Figure 11-2 ​

question 104

Multiple Choice

Figure 11-2
​
-Which graph in Figure 11-2 best reflects a Keynesian's view of the short-run impact of an increase in the personal income tax rate?

• A)1
• B)2
• C)3

---

Definitions:

Purchases of Assets

The acquisition of assets, such as property, equipment, or securities, by a company or individual as investments or for production purposes.

Inflows of Money

The movement of cash or cash equivalents into a place, organization, or financial instrument.

Positive Entry

The introduction of new firms into a market, increasing competition and potentially leading to innovation and lower prices for consumers.

Current Account Entry

An item in the balance of payments that includes all imports and exports of goods and services, along with income received from or paid to foreign countries.