Ask Question
BusinessBusiness
24 June, 15:29

Other things the same, during recessions taxes tend to Select one: a. rise. The rise in taxes contracts aggregate demand. b. fall. The fall in taxes contracts aggregate demand. c. fall. The fall in taxes stimulates aggregate demand. d. rise. The rise in taxes stimulates aggregate demand.

+3
Answers (1)
  1. 24 June, 17:57
    0
    The correct answer is letter "C": fall. The fall in taxes stimulates aggregate demand.

    Explanation:

    Recessions are the economic phases characterized by a decrease in economic growth. Unemployment rises, real income decreases, and the overall economy of a country dwindles. However, the government intervenes to turn around the situation by establishing fiscal policies.

    In such scenarios the tax rate decreases for individuals and institutions to have more money available so their purchasing power increases which, eventually, increases the aggregate demand (total demand for finished products).
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Other things the same, during recessions taxes tend to Select one: a. rise. The rise in taxes contracts aggregate demand. b. fall. The fall ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The categories for people-based services include a. volunteers, skilled operators, and professionals. b. unskilled labor, skilled labor, and professionals. c. unskilled operators, unskilled labor, and skilled labor. d.
Answers (1)
Departmental overhead rates may not correctly assign overhead costs due to: A. the use of direct labor hours in allocating overhead costs to products rather than machine time or quantity of materials used. B.
Answers (1)
5. Consider a firm redesigning its logistics network. What are the advantages to having a small number of centrally located warehouses? What are the advantages to having a larger number of warehouses closer to the end customers?
Answers (1)
Baylor service corp. redeemed $1,000 of gift cards that customers used to pay for services that were performed by the company. the related adjusting entry would include a debit to:
Answers (1)
Currently, Forever Flowers Inc. has a capital structure consisting of 35% debt and 65% equity. Forever's debt currently has a 9% yield to maturity. The risk-free rate (rRF) is 5%, and the market risk premium (rM - rRF) is 7%.
Answers (1)
New Questions in Business
Under a perpetual inventory system: a) purchases on account are debited to Purchases. b) purchase returns are debited to Purchase Returns and Allowances. c) freight costs are debited to Freight-Out. d) purchases on account are debited to Inventory.
Answers (1)
Prepare various types of budgets
Answers (1)
On October 1, 20X3, Green Corporation paid $450,000 for all of Yellow Company's outstanding common stock.
Answers (1)
What is the lowest level of the permanent party organization in texas?
Answers (1)
When an accountant examines projected financial statements, the accountant's report should include a separate paragraph that:
Answers (1)
Home » Business » Other things the same, during recessions taxes tend to Select one: a. rise. The rise in taxes contracts aggregate demand. b. fall. The fall in taxes contracts aggregate demand. c. fall. The fall in taxes stimulates aggregate demand. d. rise.
Sign Up Forgot Password?