A decrease in net taxes: a. raises aggregate expenditure by ...

[piesebel]

A decrease in net taxes:
 a. raises aggregate expenditure by raising disposable income, thereby increasing consumption.
  b. raises aggregate expenditure by raising disposable income, thereby decreasing consumption.
  c. lowers aggregate expenditure by lowering disposable income, thereby decreasing consumption.
  d. lowers aggregate expenditure by lowering disposable income, consumption remaining constant.
  e. has no effect on aggregate expenditure.

Question 2

A firm's marginal product curve slopes downward throughout its length.
 a. True
  b. False
  Indicate whether the statement is true or false

[LP]

Answer to Question 1

a

Answer to Question 2

False