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Author Question: Which of the following statements best explains the effects of transfer payments and taxes on ... (Read 27 times)

tnt_battle

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on: Jun 30, 2018
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.

Question 2

In the long run, all costs are considered variable.
 a. True
  b. False
  Indicate whether the statement is true or false


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javimendoza7

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Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

True


tnt_battle

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Reply #2 on: Jun 30, 2018
Thank you :)


javimendoza7

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Reply #3 on: Jun 30, 2018
Happy to help you


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