17 of 25 If the federal government increases govemment spending to increase aggregate demand and does so by increasing the tax rates imposed on consumers and firms, which causes consumption spending and investment to decrease, this is known as O the crowding out effect. O implementation lag O legislative lag. O excise tax.
17 of 25 If the federal government increases govemment spending to increase aggregate demand and does so by increasing the tax rates imposed on consumers and firms, which causes consumption spending and investment to decrease, this is known as O the crowding out effect. O implementation lag O legislative lag. O excise tax.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: The Influence Of Monetary And Fiscal Policy On Aggregate Demand
Section: Chapter Questions
Problem 7PA
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