Everything Else Held Constant,an Increase in Net Taxes Will Cause

question 8

Multiple Choice

Everything else held constant,an increase in net taxes will cause the IS curve to shift to the ________ and aggregate demand will ________.

• A)right;increase
• B)right;decrease
• C)left;increase
• D)left;decrease

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Definitions:

Shares

Units of ownership in a company, typically traded on a stock exchange, representing a portion of the corporate equity.

Treasury Stock

Shares that were issued and later reacquired by the issuing company.

Par Common Stock

The nominal or face value of common stock as stated in the corporate charter, which is the minimum amount that must be paid by investors for each share.

Preferred Stock

A type of stock that provides dividends before common stockholders and has priority over common stock in the event of liquidation.