If all variable taxes in the United States were removed and only fixed taxes remained, what would be the effect on the expenditures schedule?
A. The expenditure schedule will shift upward and become steeper.
B. The expenditure schedule will shift upward and become less steep.
C. The expenditure schedule will shift downward and become less steep.
D. The expenditure schedule will shift downward and become steeper.
Answer: A
You might also like to view...
What is the opportunity cost of holding money?
What will be an ideal response?
An increase in a consumer’s income will always increase the demand for a good.
Answer the following statement true (T) or false (F)
If economic data reveals that inflation is rising, the Fed:
A. does not need to know the state of real GDP growth in order to justify increasing the growth rate of the money supply. B. may increase the growth rate of the money supply without really knowing the state of real GDP growth. C. may reduce the growth rate of the money supply without really knowing the state of real GDP growth. D. will also at that time know the state of real GDP growth and can respond accordingly.
What happens to the SRAS curve when the aggregate price level increases?
What will be an ideal response?