A cut in taxes, combined with an increase in government purchases, would:
a. increase AD
b. decrease AD.
c. leave AD unchanged.
d. have an indeterminate effect on AD.
a
You might also like to view...
Members of which European Union institution are popularly elected?
What will be an ideal response?
Venture capitalists share in the risks and rewards by financing new ventures.
Answer the following statement true (T) or false (F)
Monopolists differ from perfectly competitive firms
A. on neither the cost nor demand sides of the profit equation. B. on the demand side of the profit equation alone. C. on the cost side of the profit equation alone. D. on the cost and demand sides of the profit equation.
The current deficit is
A) the deficit minus government investment. B) the deficit plus net interest payments. C) the deficit minus current expenditures. D) the deficit minus depreciation.