What Are the Effects of a Change in Taxes on Consumption

question 65

Multiple Choice

What are the effects of a change in taxes on consumption and aggregate demand?

• A) If taxes increase, consumption increases and aggregate demand shifts right.
• B) If taxes increase, consumption decreases and aggregate demand shifts left.
• C) If taxes decrease, consumption increases and aggregate demand shifts left.
• D) If taxes decrease, consumption decreases and aggregate demand shifts right.

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Definitions:

Religious Institutions

Organizations founded on religious beliefs and practices, serving as places of worship, community gathering, and dissemination of spiritual guidance.

Anti-Catholicism

Prejudice or discrimination against Catholics, often rooted in religious, cultural, or national differences.

1770s

A decade marked by the escalation of tensions between the American colonies and Great Britain, leading up to the American Revolutionary War.