Which of the following observations is true?
a. Increase in taxes shifts the consumption schedule upward.
b. Tax reductions increase equilibrium GDP.
c. Taxes reduce total spending directly.
d. Taxes do not have a multiplier effect on equilibrium GDP.
b
Economics
You might also like to view...
Institutions that channel funds from suppliers of financial capital to users of financial capital are referred to as:
A) deposit insurance committees. B) financial intermediaries. C) central banks. D) mutual funds.
Economics
Which curve shows the lowest average total cost at which it is possible to produce each output when the firm has time to change both its labor force and plant size?
What will be an ideal response?
Economics