In a Model with Income Taxes, an Increase in Autonomous

question 35

Multiple Choice

In a model with income taxes, an increase in autonomous imports will

• A)increase the budget deficit
• B)increase aggregate demand
• C)not affect saving
• D)increase consumption
• E)decrease the trade deficit

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Definitions:

Nuclear Holocaust

A theoretical scenario involving widespread destruction and radioactive fallout resulting from nuclear war.

Appeal To Majority

A fallacious argument that claims a proposition to be true because the majority of people believe it to be true.

Fallacy

An error in reasoning that results in an invalid argument or a misconception.

Majority Opinion

The judicial opinion agreed to by more than half of the members of a court, setting forth the decision in a case and an explanation of the rationale behind the court's decision.