Which Component of Aggregate Expenditure Is Affected When Net Taxes

question 72

Multiple Choice

Which component of aggregate expenditure is affected when net taxes are cut?

• A)net exports; they increase
• B)government purchases; they fall
• C)government purchases; they rise
• D)consumption; it falls
• E)consumption; it rises

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Definitions:

Private Law

The law relating to the relationship between individuals.

Administrative Law

The body of law that governs the creation and operation of administrative agencies, including the rules and regulations they enact.

Stare Decisis

A legal principle that dictates that courts should follow the precedents set in previous legal decisions.

Doctrine of Precedent

A legal principle whereby previous judicial decisions influence or control the ruling on similar future cases.