Business Taxes Increase

question 72

Multiple Choice

Business taxes increase.What is the impact on aggregate expenditures and income?

• A)Both increase.
• B)Both decrease.
• C)Aggregate expenditure increases and income decreases.
• D)Aggregate expenditure decreases and income increases.

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Definitions:

Electronic Funds Transfers

A system that allows the transfer of money between accounts via electronic signals, removing the need for physical exchanges.

Cash Disbursements

Outflows of cash for expenses, or payments made by a business during a specific period, such as paying suppliers, employees, or other expenditures.

Financial Statements

Consolidated documents that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.