A Change in Taxes Primarily Affects Aggregate Demand by Altering

question 24

Multiple Choice

A change in taxes primarily affects aggregate demand by altering:

• A)exports and net exports
• B)investment by an equal and opposite amount.
• C)disposable income and consumption spending.
• D)government purchases by an equal amount.
• E)imports and net exports

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Definitions:

Dendrites

Small projections that grow out from a neuron’s cell body; they receive transmissions from other neurons.

Axons

Long, slender projections of nerve cells that transmit electrical impulses away from the neuron's cell body, facilitating communication within the nervous system.

Neurotransmitters

Chemical substances found in the nervous system that communicate messages between neurons when released. The chemical message, once picked up by the dendrites, the cell body or the axon of a neighboring neuron, is read by that cell as a message to “fire” or “stop firing.”

Synaptic Gaps

Tiny spaces between neurons where neurotransmitters are released to allow signals to pass from one neuron to another, facilitating neural communication.