Government Spending Affects Aggregate Demand Directly, and Tax Changes Affect

question 181

Multiple Choice

Government spending affects aggregate demand directly, and tax changes affect aggregate demand indirectly.Therefore, changes in

• A)taxes are ineffective in changing aggregate demand.
• B)government spending affect aggregate demand more quickly than changes in taxes.
• C)taxes are virtually useless as a stabilization tool.
• D)government spending should be used with great caution.

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Definitions:

Golden Triangle

A region overlapping the mountains of Myanmar, Laos, and Thailand, known for being one of the most extensive opium-producing areas of the world.

Search Engine

An internet-based tool that indexes and organizes online content, enabling users to find information, websites, or items they seek by typing keywords.

Online Experiences

Digital interactions or activities provided through the internet that engage users or customers.

Percentage

A portion or share expressed as a fraction of 100, commonly used to compare proportions.