What Tends to Make the Size of a Shift in Aggregate

question 108

Multiple Choice

What tends to make the size of a shift in aggregate demand resulting from a tax change smaller than otherwise?

• A) multiplier effect
• B) crowding-out effect
• C) catch-up effect
• D) Fisher effect

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Definitions:

Surety

A guarantee, typically by a third party, ensuring the fulfillment of an obligation or the performance of a contract.

Guarantor

An individual or entity that agrees to be responsible for another's debt or performance under a contract if the original party fails to meet their obligations.

Lienholder's Claim

The right of a creditor to retain possession of a debtor's property until the debt is settled.

Type Of Lien

Legal claim or hold on property as security for payment of a debt or fulfillment of some obligation.