Which of the following statements regarding taxes is correct ?

Related Mcqs:

In the market for real output, the initial effect of an increase in the money supply is to ?

A. shift the aggregate supply curve to the right B. shift the aggregate supply curve to the left C. shift the aggregate demand curve to the left D. shift the aggregate demand curve to the right...

Suppose a wave of investor and consumer pessimism in the USA causes a reduction in spending If the US federal Reserve (Which has a broader remit than the Bank of England Which is charged only with controlling inflation) chooses to engage in activist stabilization policy it should ?

A. Increase government spending and decrease taxes B. decrease the money supply C. decrease government spending and increase taxes D. decrease interest rates...

If the marginal propensity of consume MPC is 0.75 the value of the multiplier is ?

A. 4 B. 7.5 C. 5 D. 0.75...

Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ?

A. decrease government spending Which the shifts the aggregate demand curve to the left B. decrease taxes, which shifts the aggregate demand curve to the right C. decrease taxes, which shifts the aggregate demand curve to the left D. decrease government spending which shifts the aggregate demand curve to the right...

When an increase in government purchases increases the income of some people, and those people spend some of that increase in income on additional consumer goods, we have seen a demonstration of ?

A. The multiplier effects B. supply side economics C. None of these answers D. The crowding out effect...