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

Author Question: If government increases taxes by the same amount it increases government spending, there will be no ... (Read 121 times)

Diane

  • Hero Member
  • *****
  • Posts: 576
on: Jun 29, 2018
If government increases taxes by the same amount it increases government spending, there will be no effect on aggregate demand: the increase in government spending is offset by an equal decrease in consumption spending by households.
 
  Indicate whether the statement is true or false

Question 2

Suppose you withdraw 1,000 in cash from your checking account. Draw a T-account to show the effect of this transaction on your bank's balance sheet.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

xMRAZ

  • Sr. Member
  • ****
  • Posts: 363
Reply #1 on: Jun 29, 2018
Answer to Question 1

FALSE

Answer to Question 2

The withdrawal of 1,000 from your checking account will reduce the bank's checking account deposits and reserves by 1,000.

Assets Liabilities
Reserves -1,000 Deposits -1,000


Diane

  • Member
  • Posts: 576
Reply 2 on: Jun 29, 2018
Excellent

Zebsrer

  • Member
  • Posts: 284
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Exercise increases the heart rate. Exercise increases the heart rate.
Generally, the total tax burden in the United States is much lower than that of other industrialize Generally, the total tax burden in the United States is much lower than that of other industrialize
In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con
Spirituality increases with age, but there are different patterns for the two genders. Both genders ... Spirituality increases with age, but there are different patterns for the two genders. Both genders ...
The relationship of substrate con- version (as measured by optical density) to the amount of patient ... The relationship of substrate con- version (as measured by optical density) to the amount of patient ...
Growth of Government Spending, 1870–2009 Growth of Government Spending, 1870–2009
Video: Secondary and tertiary levels of protein structure Animation

For a complete list of videos, visit our video library