Which of the Following Shifts Aggregate Demand to the Right

question 138

Multiple Choice

Which of the following shifts aggregate demand to the right?

• A)both an investment tax credit and a decrease in income tax rates
• B)an investment tax credit but not a decrease in income tax rates
• C)a decrease in income tax rates but not an investment tax credit
• D)neither an investment tax credit nor a decrease in income tax rates

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Definitions:

Payout Rates

The percentage of earnings or profits that a company distributes to its shareholders as dividends.

State Lotteries

Government-run lotteries that operate as a form of gambling, providing revenue for public projects and services.

Casinos

Facilities that accommodate and house various types of gambling activities and entertainments.

Value-Added Tax (VAT)

A tax on the amount by which the value of an article has been increased at each stage of its production or distribution, ultimately passed on to the consumer.