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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A $1.5 trillion increase in investment leads equilibrium expenditure to increase from $7.0 trillion to $10.5 trillion. In this case, the expenditure multiplier is
A) 7.00. B) 4.67. C) 2.33. D) 1.50. E) 10.5.
Which of the following is an example of someone with inflationary expectations taking a step designed to insulate themselves from the higher expected rates of inflation
What will be an ideal response?
Over long periods of time, M2 velocity has been relatively constant.
Answer the following statement true (T) or false (F)
To what extent can changes in the rate of technological progress cause permanent changes in the rate of growth of output per worker? Explain
What will be an ideal response?