Which of the Following Observations Is True

question 94

Multiple Choice

Which of the following observations is true?

• A)Tax changes have no impact on the consumption schedule.
• B)Tax reduction shifts the consumption schedule upward.
• C)Changes in taxes have a multiplier effect on equilibrium GDP on the supply-side.
• D)Tax increases increase equilibrium GDP.

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Definitions:

Publicly Held

Describes a company whose shares are traded openly on stock exchanges and can be purchased by the general public.

Securities Act

A U.S. law enacted in 1933 that requires the disclosure of significant financial information by companies offering securities (stocks, bonds) for public sale.

Exempt

To be free or released from an obligation, rule, or requirement typically imposed on others.

Securities Exchange Act

A U.S. federal law enacted in 1934 that governs the trading of securities, such as stocks and bonds, to protect investors and maintain fair and orderly markets.