Author Question: How does a change in taxes primarily affect aggregate demand? a. A tax change alters exports and ... (Read 45 times)

pragya sharda · **on:** Jun 30, 2018

How does a change in taxes primarily affect aggregate demand?
a. A tax change alters exports and net exports.
b. A tax change alters investment by an equal and opposite amount.
c. A tax change alters disposable income and consumption spending.
d. A tax change alters government purchases by an equal amount.

Question 2

In fractional reserve banking:
a. bank assets are less than bank reserves.
b. only a fraction of total deposits are bank reserves.
c. only a fraction of required reserves are investor assets.
d. bank loans are less than bank reserves.
e. a fraction of bank reserves needs to be backed by gold.