If personal income taxes and business taxes increase, then this will:
A. Increase aggregate demand and aggregate supply
B. Decrease aggregate demand and aggregate supply
C. Decrease aggregate demand and increase aggregate supply
D. Increase aggregate demand and decrease aggregate supply
B. Decrease aggregate demand and aggregate supply
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The opportunity cost of money is
A) zero. B) the inflation rate. C) the real interest rate. D) the nominal interest rate.
Are there ever exceptions to the law of demand?
Universal health coverage, lemon laws, and dealer warranties are all examples of tools used to reduce
A. moral hazard. B. market efficiency. C. risk premiums. D. adverse selection.
Nominal GDP targeting ________
A) is consistent with a dual mandate B) has been adopted in more countries than have adopted inflation targeting C) is, compared to inflation targeting, easier both to implement and to explain D) is preferred strongly by "conservative" central bankers