Which of the Following Will Cause the Demand Curve for a Normal

question 170

Multiple Choice

Which of the following will cause the demand curve for a normal good to shift to the right?

• A)a decrease in income
• B)an increase in the price of a complementary good
• C)a decrease in the price of the good
• D)an increase in the price of a substitute good
• E)an expectation of a future price decline

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Definitions:

Tax Reform Act

Legislation aimed at revising and simplifying the tax code, often including changes to tax rates, deductions, and credits.

Kemp-Roth Tax Cut

A significant federal tax reduction in the US that was passed in 1981, aimed at encouraging economic growth by reducing individual income tax rates.

Federal Personal Income Tax

A tax levied by the U.S. federal government on the annual income of individuals, with rates varying based on income level.

President's Budget

An annual proposal by the U.S. President outlining the government's planned financial activities and spending for the upcoming fiscal year.