In the aggregate expenditures model, a reduction in taxes may:
A. increase saving.
B. decrease real GDP.
C. increase unemployment.
D. reduce consumption.
A. increase saving.
You might also like to view...
Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, nine million dollars in excess reserves, and faces a required reserve ratio of ten percent
Given this information, we can say First National Bank has ________ million dollars in required reserves. A) one B) two C) eight D) ten
Tax can fall disproportionately on certain income groups. High-income households (HH) are impacted by gasoline taxes the most.
a. true b. false
Darius’s country and Selim’s country each have educated workers and plenty of factories, machines, and tools. However, Darius’s country has greater output and a higher economic growth rate. What is most likely the cause of this?
a. Darius’s country has a greater quantity and quality of natural resources. b. The population of Selim’s country is much larger. c. Selim’s country has a more extensive and reliable infrastructure network. d. The government in Darius’s country does not enforce the rule of law.
When DVDs and hamburgers were the same price, Mavis consumed 3 hamburgers and 5 DVDs, and Mavis received 10 utils from the last hamburger and 15 utils from the last DVD consumed. What should be Mavis' consumption strategy?
A) consume more DVDs and fewer burgers B) consume more burgers and fewer DVDs C) consume more of both items D) consume less of both items