A change in a fixed tax will cause the consumption schedule to a. become steeper. b. become flatter. c. shift in a parallel manner. d. remain fixed as the economy moves along the schedule. Give answer with explanation

A change in a fixed tax will cause the consumption schedule to a. become steeper. b. become flatter. c. shift in a parallel manner. d. remain fixed as the economy moves along the schedule. Give answer with explanation

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

ChapterD: The Expenditure-output Model

Section: Chapter Questions

Problem 24CTQ: Exercise D24 Compare two policies: a tax cut on income or an increase in government spending on...

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Question

A change in a fixed tax will
cause the consumption
schedule to
a. become steeper.
b. become flatter.
c. shift in a
parallel manner.
d. remain fixed as the
economy moves along the
schedule.
Give answer with explanation

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