This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: How do changes in income tax policies affect aggregate demand? A) Higher taxes increase corporate ... (Read 42 times)

bobypop

  • Hero Member
  • *****
  • Posts: 539
on: Jun 29, 2018
How do changes in income tax policies affect aggregate demand?
 
  A) Higher taxes increase corporate investment and aggregate demand.
  B) Higher taxes reduce disposable income, consumption, and aggregate demand.
  C) Higher taxes increase aggregate supply and thus increase aggregate demand as well.
  D) Higher taxes increase disposable income, consumption, and aggregate demand.

Question 2

Into which category of aggregate expenditure would each of the following transactions fall?
 
  a. Sandra MacMillian purchases a new Ford Focus.
  b. The city of Richardson buys 5 new garbage trucks.
  c. Adrian Garcia buys a newly constructed townhome.
  d. A consumer in Latvia orders an iPhone from Apple.
  e. Ford Motor Company buys 300 new iPhones from Apple.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Leostella20

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

a. Consumption
b. Government purchases
c. Planned investment
d. Net exports
e. Planned investment


bobypop

  • Member
  • Posts: 539
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

Jossy

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

IQ and Genetics The closer the genetic relationship, the higher the correlation in IQ. Based on: Br IQ and Genetics The closer the genetic relationship, the higher the correlation in IQ. Based on: Br
Frequent dining on fast food, which tends to be higher in fat and carbohydrates, may be convenient ... Frequent dining on fast food, which tends to be higher in fat and carbohydrates, may be convenient ...
Relationship between Income and Happiness in the United States Relationship between Income and Happiness in the United States
How an Increase in Income Inequality Affects the Desired Tax Rate How an Increase in Income Inequality Affects the Desired Tax Rate
Income per Capita versus Total Fertility Rate Income per Capita versus Total Fertility Rate
Philip wants to supplement his pension by $415 per month with income from his investments. His ... Philip wants to supplement his pension by $415 per month with income from his investments. His ...
Video: Bone tissue types - compact and spongy

For a complete list of videos, visit our video library