A decrease in net taxes:
a. raises aggregate expenditure by raising disposable income, thereby increasing consumption.
b. raises aggregate expenditure by raising disposable income, thereby decreasing consumption.
c. lowers aggregate expenditure by lowering disposable income, thereby decreasing consumption.
d. lowers aggregate expenditure by lowering disposable income, consumption remaining constant.
e. has no effect on aggregate expenditure.
a
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Of the types of business organizations in the United States, partnerships account for the ________ percentage of firms and ________ percentage of profits
A) smallest; neither the largest nor smallest B) smallest; the smallest C) largest; the smallest D) largest; neither the largest nor smallest
External debt of the United States refers to
A. U.S. government debt held by foreigners. B. Combined foreign debt held by sources outside the U.S. government. C. The ownership of nongovernment debt by the government. D. The debt of nongovernment organizations.
Money that has value because the government has declared it legal tender to pay debts:
a. currency b. commodity money c. representative money d. fiat money
Economists focus on the effect of changes in income and prices in influencing actual consumer purchases.
Answer the following statement true (T) or false (F)