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

Author Question: Which of the following statements best explains the effects of transfer payments and taxes on ... (Read 35 times)

tnt_battle

  • Hero Member
  • *****
  • Posts: 556
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


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

javimendoza7

  • Sr. Member
  • ****
  • Posts: 293
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

True


tnt_battle

  • Hero Member
  • *****
  • Posts: 556
Reply #2 on: Jun 30, 2018
Thank you :)


javimendoza7

  • Sr. Member
  • ****
  • Posts: 293
Reply #3 on: Jun 30, 2018
Happy to help you


« previous next »
 

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Effects of introduced parasites on American chestnut trees. Effects of introduced parasites on American chestnut trees.
Independent assortment of chromosomes at meiosis explains Mendel’s ratio Independent assortment of chromosomes at meiosis explains Mendel’s ratio
Effects of Twinkling Effects of Twinkling
Effects of Ro15-4513, an Alcohol Antagonist Effects of Ro15-4513, an Alcohol Antagonist
Ratings of Perceived Contradictions in Political Statements Ratings of Perceived Contradictions in Political Statements
Self-massage of the forearm helps reduce the effects of stress on muscles used for massage. Self-massage of the forearm helps reduce the effects of stress on muscles used for massage.
Video: Haustral churning, Gastrocolic reflex and mass peristalsis & Defecation

For a complete list of videos, visit our video library