A cut in taxes will have a greater impact on aggregate demand if it is given to: a. people with a low MPC b. people with a high MPC c. everyone in the economy d. those who hold a large amount of wealth The government budget balance equals: a. taxes + government purchases + government transfers b. taxes - government purchases - government transfers c. taxes - government purchases + government transfers
A cut in taxes will have a greater impact on aggregate demand if it is given to: a. people with a low MPC b. people with a high MPC c. everyone in the economy d. those who hold a large amount of wealth The government budget balance equals: a. taxes + government purchases + government transfers b. taxes - government purchases - government transfers c. taxes - government purchases + government transfers
Chapter24: Fiscal Policy
Section: Chapter Questions
Problem 3P
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A cut in taxes will have a greater impact on aggregate demand if it is given to:
a. people with a low MPC
b. people with a high MPC
c. everyone in the economy
d. those who hold a large amount of wealth
The government budget balance equals:
a. taxes + government purchases + government transfers
b. taxes - government purchases - government transfers
c. taxes - government purchases + government transfers
d.taxes + government purchases - government transfers
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