If Taxes Are Cut,there Is

question 251

Multiple Choice

If taxes are cut,there is

• A)an increase in aggregate demand and the AD curve shifts rightward.
• B)a decrease in aggregate demand and the AD curve shifts leftward.
• C)an increase in the quantity of real GDP demanded and a movement up along the AD curve.
• D)a decrease in the quantity of real GDP demanded and a movement down along the AD curve.
• E)no change in aggregate demand,only a change in potential GDP.

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Definitions:

Lease Payment

Regular payments made by a lessee to a lessor for the use of an asset, as agreed upon in a lease contract.

Sales-Type Lease

A lease arrangement that allows the lessor to recognize profit at the inception of the lease due to the transfer of ownership or the realization of a sales profit beyond interest income.

Present Value Factors

Present Value Factors are numerical values used to calculate the present value of a future sum of money or stream of cash flows given a specified rate of return.