Which of the following statements best explains the effects of transfer payments and taxes on aggregate spending?
a. Transfer payments and taxes affect aggregate spending directly, just as consumption does
b. Transfer payments and taxes affect aggregate spending indirectly by first changing disposable income and thereby changing consumption.
c. Changes in the amount of transfer payments and taxes cancel each other and therefore have no influence on any economic variable.
d. Transfer payments and taxes affect disposable income but have no effect on consumption.
e. Transfer payments affect disposable income, but taxes do not.
b
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Stating the dollar has strengthened against the yen means the dollar has depreciated
Indicate whether the statement is true or false
Which of the following exempliflies altruism?
a. A teacher conducting night classes for working professionals. b. A lawyer defending a juvenile client who is accused of murder. c. A person on his way to work stopping to help accident victims on the road. d. Government imposing a high sales tax on liquor.
An import quota or tariff on French wine that raises the prices for wine will probably a. hurt domestic wineries, which will lose business as a result of the higher prices
b. hurt both domestic wine drinkers and domestic wine producers because of a reduction in competition. c. hurt both domestic wine drinkers and domestic wineries but this will be more than offset by a reduction in driving fatalities. d. hurt domestic wine drinkers but help domestic wineries, which will gain from the higher prices.
In the United States in 2015, consumption represented slightly less than
a. 60 percent of GDP. b. 70 percent of GDP. c. 80 percent of GDP. d. 90 percent of GDP.