An increase in personal income taxes would lower net exports and shift the AD curve to right decrease consumption and shift the AD curve to the left lower government purchases and shift the AD curve to the right increase consumption and shift the AD curve to the right

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter19: International Finance And The Foreign Exchange Market
Section: Chapter Questions
Problem 5CQ
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An increase in personal income taxes would

lower net exports and shift the AD curve to right

decrease consumption and shift the AD curve to the left

lower government purchases and shift the AD curve to the right

increase consumption and shift the AD curve to the right

 

 

Which of the following would shift the AD curve to the left

a depreciation of the dollar in the foreign exchange markets

expansionary monetary policy

an elimination of an investment tax credit

an increase in government spending on roads and bridges

 

Which of the following would shift the LRAS curve to the right

an increase in taxes

an increase in productivity that increases potential output

an increase in stock market prices

an increase in oil prices

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