Why Does a Tax Change Affect Aggregate Demand

question 40

Multiple Choice

Why does a tax change affect aggregate demand?

• A) A tax change alters saving by an equal amount.
• B) A tax change alters imports and net exports.
• C) A tax change alters government spending by an equal amount.
• D) A tax change alters disposable income and consumption spending.

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Definitions:

Data

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Information

Data that is processed, organized, or structured in a way that adds context or meaning, making it useful for decision-making or understanding.

Statistical Displays

Statistical Displays are visual representations of data, such as graphs, charts, and tables, used to convey statistical information clearly.

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To skillfully handle, control, or use a tool, instrument, or system, often in a scientific or technical context.