In the traditional Keynesian model, an income tax cut raises real GDP because
A. consumption spending depends positively on after-tax income.
B. consumption spending depends negatively on after-tax income.
C. consumption spending is not related to after-tax income.
D. of the crowding-out effects of taxes.
Answer: A
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When the price of tortilla chips rose by 10 percent, the quantity of tortilla chips sold fell 4 percent, and the sale of dips (like salsa and bean dip) fell 8 percent
This set of facts indicates that the cross-price elasticity between tortilla chips and dips is ________, so the two are ________. A) 0.4; substitutes B) -0.4; complements C) -0.8; complements D) 0.8; substitutes
If M stand for the money supply, V for the velocity of money, P for the average selling price, and Q for the output of goods and services, the equation of exchange is MV = PQ
a. True b. False Indicate whether the statement is true or false
Gresham's Law is the tendency for low-quality money to drive high-quality money out of circulation.
a. true b. false
Define “demand.”
Please provide the best answer for the statement.