
A tax rebate,which is expected to be offered in this and all future years,will
A) have a small positive effect on consumption and aggregate demand.
B) have no effect on consumption and aggregate demand.
C) will have a significant positive effect on consumption and aggregate demand, with aggregate demand growing by a multiple of the tax rebate.
D) increase aggregate supply and aggregate demand.
Correct Answer:
Verified
Q147: If government increases taxes by the same
Q150: In absolute value,the tax multiplier is greater
Q157: The tax multiplier is calculated as "one
Q166: If real GDP is $300 billion below
Q171: Suppose that the current equilibrium GDP is
Q174: An increase in the sensitivity of private
Q176: Crowding out refers to a decline in
Q177: Suppose real GDP is currently $12.5 trillion
Q178: In the case of an upward-sloping aggregate
Q187: If policymakers implement an expansionary fiscal policy
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