Which of the following would most likely cause an increase in aggregate demand?
a. an increase in the corporate income tax
b. an increase in interest rates
c. an increase in the budget deficit
d. an increase in personal income tax rates
C
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. Patents have ambiguous welfare consequences because they both create monopoly power and promote inventive activity. 2. The competition among firms to acquire the rights to legal barriers to entry helps to reduce the welfare costs of monopoly. 3. Social gain is lowered when a monopoly begins to practice price discrimination. 4. When a simple profit-maximizing monopoly begins to practice second-degree price discrimination, both consumers and the monopoly will benefit. 5. Both first-degree price discrimination and the two-part tariff, when perfectly implemented, reduce consumers' surplus to zero.
Discretionary policy deficits are associated with: a. increases in national saving. b. higher prices
c. lower outputs. d. lower interest rates. e. raising taxes.
$2.98 is an example of
A) typical pricing. B) markup pricing. C) odd pricing. D) margin pricing.
What does GDP measure to avoid double-counting?
a. final goods and services b. intermediate goods and services c. net exports d. all sales of goods and services