A Decrease in Taxes Will Shift Aggregate Demand to the _____

question 164

Short Answer

A decrease in taxes will shift aggregate demand to the _____, cause consumption to _____, and cause output to _____. Due to the crowding-out effect, investment will _____.

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Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services provided.

Ending Equity

The value of ownership in a company at the end of an accounting period, calculated as assets minus liabilities.

Dividends Paid

The actual cash distributed to shareholders out of the corporation’s earnings in a particular period.

Stockholder Investments

Funds provided by investors to a corporation in exchange for ownership stakes, typically in the form of shares of equity.