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

Author Question: How do changes in income tax policies affect aggregate demand? A) Higher taxes increase corporate ... (Read 60 times)

bobypop

  • Hero Member
  • *****
  • Posts: 539
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.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Leostella20

  • Sr. Member
  • ****
  • Posts: 337
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

  • Member
  • Posts: 539
Reply 2 on: Jun 29, 2018
Gracias!

amynguyen1221

  • Member
  • Posts: 355
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Potency and efficacy: (a) drug A has a higher potency than drug B; (b) drug A has a higher efficacy Potency and efficacy: (a) drug A has a higher potency than drug B; (b) drug A has a higher efficacy
In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it. In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
Global Stratification: Income of the World's Nations Global Stratification: Income of the World's Nations
Community colleges have opened higher education to millions of students who would not otherwise have ... Community colleges have opened higher education to millions of students who would not otherwise have ...
How much the temperature will rise depends on many factors that affect the level of GHG emission How much the temperature will rise depends on many factors that affect the level of GHG emission
Income per Capita versus Income of the Bottom Quintile Income per Capita versus Income of the Bottom Quintile
Video: The Pressure Flow Model in a Plant

For a complete list of videos, visit our video library