"If Congress Cuts Income Taxes, Demand for Output Is Likely

question 105

Multiple Choice

"If Congress cuts income taxes, demand for output is likely to increase" is a ________ statement about ________ policy.

• A)positive; fiscal
• B)normative; fiscal
• C)positive; monetary
• D)normative; monetary

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Definitions:

Indorsement

A rephrased definition: The act of signing one's name on the back of a negotiable instrument, effectively transferring rights to another party.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the ability to be transferred to another party.

Significant Effects

Impacts or changes that are considerable in size, importance, or consequence in a specific context or situation.

Individual Capacity

Acting on one’s own behalf, involving personal rights or responsibilities, rather than on behalf of a group or a corporate entity.