An Increase in Net Taxes

question 30

Multiple Choice

An increase in net taxes

• A)raises aggregate expenditure by raising disposable income,thereby increasing consumption
• B)raises aggregate expenditure by raising disposable income,thereby decreasing consumption
• C)lowers aggregate expenditure by lowering disposable income,thereby increasing consumption
• D)lowers aggregate expenditure by lowering disposable income,thereby decreasing consumption
• E)has no effect on aggregate expenditure

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Definitions:

Coining Money

The power to produce and regulate currency, typically exercised by a sovereign government or central authority, ensuring a standardized form of money within its jurisdiction.

Jay's Treaty

A 1795 treaty between the United States and Great Britain that sought to settle outstanding issues from the American Revolutionary War and facilitate ten years of peaceful trade between the nations.

Impressment

The British navy’s practice of using press-gangs to kidnap men in British and colonial ports who were then forced to serve in the British navy.

British Imports

Goods or services brought into a country from the United Kingdom for sale or use.