A tax cut
A. Indirectly increases the disposable income of consumers.
B. Contains less fiscal stimulus than an increase in government spending of the same size.
C. Shifts the AD curve to the left.
D. Directly decreases the disposable income of consumers.
Answer: B
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Which of the following might be an effect of advertising?
a. all of the following b. increased product differentiation c. increased total costs of production d. increased average total costs of production e. increased demand for the product
Explain the relationship between opportunity costs and money costs. Can they be treated as identical?
Fill in the above table.
Money is created when
A. a bank gives you a $1,000 loan. B. you pay back a $1,000 loan to a bank. C. you write a check for $1,000. D. you deposit $1,000 cash to be deposited in your checking account.