According to the traditional Keynesian approach, a tax increase lowers aggregate demand because
A. taxes are part of the C + I + G + X line.
B. a tax cut always results in a balanced budget.
C. taxpayers anticipate a tax increase in the future.
D. disposable income available to consumers decreases.
Answer: D
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Refer to the figure above. What is the profit-maximizing quantity that the monopolist should produce if it faces a constant marginal cost of $5?
A) 200 units B) 300 units C) 400 units D) 600 units
An increase in foreign output would cause the domestic country's net exports to ________ and cause the domestic country's IS curve to ________
A) rise; shift up B) rise; shift down C) fall; shift up D) fall; shift down
The trade balance is
a. the services balance plus the current account balance plus the capital account balance b. merchandise exports minus merchandise imports c. the current account balance plus the capital account balance d. foreign purchases of domestic assets minus domestic purchases of foreign assets e. the services balance plus the capital account balance
The balance of payments ____
a. b and e b. is always zero c. with some nations is different than it is with others d. is negative when the nation runs a trade deficit e. can only be expanded when the government has foreign exchange reserves