How does a change in taxes primarily affect aggregate demand? a. ...

[pragya sharda]

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.

[aprice35067]

Answer to Question 1

c

Answer to Question 2

b

[pragya sharda]

Excellent

[frankwu0507]

TYSM