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:

Moratorium

A period of delay or suspension of an activity or a law. In psychology, it often refers to a time during adolescence when adult responsibilities are postponed as the individual explores various commitments.

Identity Achievement

Erikson’s term for the attainment of identity, or the point at which a person understands who they are as a unique individual, in accord with past experiences and future plans.

Bicultural Identity

The combination of identifying with and integrating aspects of two different cultures.

Psychosocial Development

A domain of development that involves changes in how individuals understand themselves and others, including emotions, personality, and social interactions.