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Which of the Following Tends to Make the Size of a Shift

question 62

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Which of the following tends to make the size of a shift in aggregate demand resulting from a tax cut smaller than it otherwise would be?


Definitions:

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Legal Entity

An organization that has legal rights and obligations, including the ability to enter into contracts and own property.

Stockholders' Equity

The residual interest in the assets of a corporation after subtracting liabilities, representing the ownership interest of shareholders.

Corporation

A business organized under state or federal statutes as a separate legal entity.

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