In an aggregate expenditures diagram,a lump-sum tax (T) will:
A) not affect the C + Ig + Xn line.
B) shift the C + Ig + Xn line upward by an amount equal to T.
C) shift the C + Ig + Xn line downward by an amount equal to T.
D) shift the C + Ig + Xn line downward by an amount equal to T × MPC.
Correct Answer:
Verified
Q126: It is true that:
A) equal increases in
Q127: Answer the question on the basis of
Q128: If the marginal propensity to consume in
Q129: If the MPC in an economy is
Q130: If a $20 billion increase in government
Q132: In the aggregate expenditures model,a reduction in
Q133: If government increases its tax revenues by
Q134: If the marginal propensity to save in
Q135: In the aggregate expenditures model,an increase in
Q136: Answer the question on the basis of
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