All of the Following Will Shift the AD Curve to the Right

question 38

Multiple Choice

All of the following will shift the AD curve to the right except a(n) :

• A)increase in consumer confidence.
• B)decrease in taxes.
• C)increase in government spending.
• D)increase in the MPC.
• E)increase in transfer payments.

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Definitions:

Shareholder

An individual or entity that owns shares in a corporation and therefore has ownership interest in the company.

Book Income

The income of a business reported in its financial statements, different from taxable income reported to the IRS.

Taxable Income

The amount of income used to determine how much tax an individual or a corporation owes to the government, after all deductions and exemptions have been accounted for.

Tax-Exempt

A status that exempts individuals or organizations from having to pay certain taxes.