Why does a tax change affect aggregate demand?
a. A tax change alters saving by an equal amount.
b. A tax change alters imports and net exports.
c. A tax change alters government spending by an equal amount.
d. A tax change alters disposable income and consumption spending.
D
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Interest rates typically rise when
A) bond prices increase. B) bond prices decrease. C) the coupon payout on existing bonds increase. D) the maturity date on existing bonds extends farther into the future.
A common resource is:
A. rival in consumption and excludable. B. not rival in consumption, but excludable. C. rival in consumption, but not excludable. D. not rival in consumption and not excludable.
Recessions are typically associated with increases on interest rates on risky securities coupled with increases on interest rates on Treasury securities
a. True b. False Indicate whether the statement is true or false
Brady pays $37,450 for a new car, including a federal excise tax of $700 and a state sales tax of $1,750. The indirect business tax value added to GDP under the income approach for this purchase is
A. $2,450 because this is income for the government. B. $2,450 because this is profit for the firm. C. $700 because only federal taxes are included in indirect business taxes; state taxes are excluded. D. $1,750 because only state taxes are included in indirect business taxes; federal taxes are excluded.