In the traditional Keynesian model, a tax cut
A) causes the C + I + G + X line to shift upward.
B) causes the C + I + G + X line to shift downward.
C) causes a movement along the C + I + G + X line.
D) does not affect the C + I + G + X line.
Ans: A) causes the C + I + G + X line to shift upward.
You might also like to view...
The income effect
a. of a price increase works to increase the quantity of the good demanded b. of a price increase works to decrease the quantity of the good demanded c. of a price decrease works to increase the quantity of the good demanded d. of a price decrease works to decrease the quantity of the good demanded e. of a price decrease could work to increase or decrease the quantity of the good demanded
Incentive-based regulations provide polluters no incentive to reduce pollution and are thus not used often.
A. True B. False C. Uncertain
Which of the institutions has influence over the United States Federal Reserve (the Fed)?
A) The United States Senate B) The Federal Reserve Board of Governors C) The President of the United States D) All of the above
A political leader suggesting that an economic downturn will be better dealt with actively changing tax and spending policies is advocating
A. Monetary policy. B. Discretionary Fiscal Policy. C. Regulatory changes. D. Nondiscretionary Fiscal Policy.