If Net Taxes Exceed Government Purchases

question 131

Multiple Choice

If net taxes exceed government purchases,

• A)the price level will rise
• B)the money supply must fall
• C)the aggregate demand curve will shift rightward
• D)the short-run aggregate supply curve will leftward
• E)there will be a federal budget surplus

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Definitions:

Dividends

Dividends are payments made by a corporation to its shareholder members, distributing a portion of the company's earnings.

Investment in Grub

The act of putting money into Grub (assuming Grub is a specific entity or company), expecting future financial returns.

Goodwill

The intangible asset that arises when a company acquires another business for a price higher than the fair value of its net identifiable assets.

Business Combination

A transaction or event in which an acquirer takes control of one or more businesses, such as through merger or acquisition.