A Decline in Taxes ________ Consumer Expenditure and Shifts the ________

question 71

Multiple Choice

A decline in taxes ________ consumer expenditure and shifts the ________ curve to the ________,everything else held constant.

• A)raises;LM;right
• B)lowers;IS;left
• C)raises;IS;right
• D)lowers;LM;left

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Definitions:

Hydraulically

Pertaining to or involving the movement or operation of devices through the pressure of liquids in motion.

Electrically

Pertaining to the use or operation by electricity, involving electronic circuits or devices.

Milky Appearance

Describes a condition where a normally transparent or semi-transparent fluid, like oil or hydraulic fluid, has become cloudy, often due to contamination with water.

Aeration

The blending of a gas into a liquid such as the mixing of air into oil by the churning action of rotating gears.