A Tax Cut Intended to Increase Aggregate Demand Is an Example

question 57

Multiple Choice

A tax cut intended to increase aggregate demand is an example of

• A)Fiscal restraint.
• B)Monetary restraint.
• C)Fiscal stimulus.
• D)Fiscal targeting.

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Definitions:

Inventory

The total amount of goods and materials held in stock by a business, warehouse, or store.

Gross Domestic Product

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a certain period of time.

Leakage

Any diversion of income from the domestic spending stream; includes saving, taxes, and imports.