According to the traditional Keynesian approach, a tax cut raises aggregate demand because
A) taxes are part of the C + I + G + X line.
B) disposable income available to consumers increases.
C) taxpayers anticipate a tax increase in the future.
D) a tax cut always results in a balanced budget.
Correct Answer:
Verified
Q243: What are the effects of fiscal policy
Q243: In the traditional Keynesian model, if the
Q245: What are the automatic stabilizers the United
Q247: The traditional Keynesian approach concludes that an
Q250: In the traditional Keynesian model, an increase
Q251: According to the traditional Keynesian approach, if
Q252: In the traditional Keynesian model, a tax
Q254: Fiscal policy during periods of relatively low
Q257: In the traditional Keynesian model, if the
Q266: In the traditional Keynesian model, an income
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