A Change in Autonomous Net Taxes Affects the Equilibrium Quantity

question 40

Multiple Choice

A change in autonomous net taxes affects the equilibrium quantity of GDP demanded

• A)in the same way as a change in autonomous government purchases
• B)in the same way as a change in autonomous planned investment
• C)in the same way as a change in autonomous net exports
• D)only indirectly,by first changing the level of disposable income
• E)in an unpredictable manner

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Definitions:

Import Quota

A government-imposed limit on the amount or value of goods that can be imported into a country over a specified period of time, usually to protect domestic industries.

U.S. Treasury

The federal department responsible for managing government revenue, issuing currency, and executing fiscal policy in the United States.

Foreign Producers

Companies or entities that manufacture goods or provide services outside the country of sale.

Domestic Supply

The total amount of goods and services produced within a country's borders, available for domestic consumption or export.