In Which Case Can We Be Sure Aggregate Demand Shifts

question 460

Multiple Choice

In which case can we be sure aggregate demand shifts left overall?

• A)people want to save more for retirement and the government raises taxes
• B)people want to save more for retirement and the government cuts taxes
• C)people want to save less for retirement and the government raises taxes
• D)people want to save less for retirement and the government cuts taxes

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Definitions:

Equity in Subsidiary Earnings

The share of earnings attributed to the parent company from its ownership interest in a subsidiary.

Equity Method

An accounting method used to record investments in associate companies where the investor has significant influence but not full control, typically 20%-50% ownership. The investor's share of the investee's net income or loss is reflected in the investor's financial statements.

Net Income

A company's profit after deducting expenses and taxes from revenue.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.