A decrease in taxes increases equilibrium output through its effect on consumption.
Correct Answer:
Verified
Q3: Milton Friedman was a major contributor to
Q4: A decrease in the interest rate shifts
Q5: Aggregate demand is composed of consumption, investment,
Q6: The IS curve is the equilibrium pairs
Q7: An increase in net exports shifts the
Q9: If the marginal propensity to consume is
Q10: The IS curve is upward sloping.
Q11: When Sam buys stock in Ford, increases.
Q12: If imports decrease, then equilibrium output falls.
Q13: One reason investment is inversely related to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents