A Decrease in Net Taxes

question 129

Multiple Choice

A decrease in net taxes:

• A)raises aggregate expenditure by raising disposable income,thereby increasing consumption.
• B)raises aggregate expenditure by raising disposable income,thereby decreasing consumption.
• C)lowers aggregate expenditure by lowering disposable income,thereby decreasing consumption.
• D)lowers aggregate expenditure by lowering disposable income,consumption remaining constant.
• E)has no effect on aggregate expenditure.

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Definitions:

Correlational Method

A research strategy that involves measuring two or more variables to determine the degree of relationship between them.

Variables

Elements, features, or factors that are liable to vary or change within a study, experiment, or any form of research.

Sample

A subset of individuals or items selected from a larger population, used in research to draw conclusions about the entire population.

Independent Variable

The variable that is manipulated or changed in an experiment to investigate its effect on the dependent variable.