Suppose fiscal authorities raise state income tax rates.As a result, disposable income falls, thereby ____, and causing __________
A) decreasing consumption spending; the aggregate demand curve to shift to the left.
B) decreasing consumption spending; a movement along a given aggregate demand curve.
C) increasing saving; the aggregate demand curve to shift to the left.
D) increasing saving; a movement along a given aggregate demand curve.
Correct Answer:
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Q70: A recessionary gap can be closed with
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Q74: Figure 12-1 Q75: Figure 12-2 Q77: An inflationary gap can be closed with Q78: Figure 12-2 Q84: Suppose a country repeals an investment tax Q84: Suppose a country institutes an investment tax Q86: Suppose a country increases government purchases by Q90: Which of the following best explains why Q94: Figure 12-3 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![]()
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