If net taxes are cut, consumer

a. spending is not affected
b. spending increases by the amount of the tax cut
c. spending increases by an amount less than the full amount of the tax cut
d. saving increases by the full amount of the tax cut
e. spending increases by two-thirds of the amount of the tax cut and consumer saving increases by one-third of the amount of the tax cut

C

Economics

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In most cases, optimization in differences is faster and easier than optimization in levels because:

A) the former involves fewer steps to arrive at a conclusion. B) the former only focuses on the key differences between options and ignores things in common. C) the former focuses only on the benefits of an option, ignoring all calculations involving costs. D) the former uses simpler arithmetic tools in comparison to the latter.

Economics

According to the simple quantity theory of money in the AD-AS framework, the AD curve is

A) vertical. B) downward sloping. C) horizontal. D) upward sloping.

Economics