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vellojo vellojo
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Posts: 2982
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8 years ago
Suppose the government increases autonomous taxes. This change decreases
A) disposable income, which decreases consumption expenditure and aggregate expenditure.
B) government expenditure, which decreases aggregate expenditure.
C) disposable income, which decreases aggregate supply.
D) consumption expenditure and spending on imports. The effect on aggregate expenditure depends on whether domestic spending or spending on imports decreases the most.
Textbook 
Foundations of Macroeconomics

Foundations of Macroeconomics


Edition: 8th
Authors:
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Studying economics @ Edinburgh U
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Answer verified by a subject expert
yaderayadera
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Posts: 492
8 years ago
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vellojo Author
wrote...
7 years ago
Thank you for this

Comes at the right time too!

Good luck on your exams
Studying economics @ Edinburgh U
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