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Author Question: How do changes in income tax policies affect aggregate demand? A) Higher taxes increase corporate ... (Read 40 times)

bobypop

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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.


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Leostella20

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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

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

covalentbond

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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