[Answer] Which of the following correctly describes the cause and effect chain for a decrease in personal income taxes?

Answer: A decrease in taxes will increase disposable income which increases consumer spending and shifts AD right.
Which of the following correctly describes the cause and effect chain for a decrease in personal income taxes?

Reaganomics (/ r eɪ ɡ ə ˈ n ɒ m ɪ k s /; a portmanteau of [Ronald] Reagan and economics attributed to Paul Harvey) or Reaganism refers to the neoliberal economic policies promoted by U.S. President Ronald Reagan during the 1980s. These policies are …

Thu Aug 14 2003 14:30:00 GMT-0400 (Eastern Daylight Time) · Monetary policy is the policy adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply often as an attempt to reduce inflation or the interest rate to ensure price stability and general trust of the value and stability of the nation’s currency.

Monetary policy – Wikipedia

Network effect – Wikipedia

Monetary policy – Wikipedia

Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent or uncertain loss.. An entity which provides insurance is known as an insurer an insurance company an insurance carrier or an underwriter.A person or entity who buys insurance is known as an insured or as a policyholder.

In economics a network effect (also called network externality or demand-side economies of scale) is the phenomenon by which the value or utility a user derives from a good or service depends on the number of users of compatible products. Network effects are typically positive resulting in a given user deriving more value from a product as other users join the same network.

Thu Jul 03 2003 14:30:00 GMT-0400 (Eastern Daylight Time) · Markup (or price spread) is the difference between the selling price of a good or service and cost.It is often expressed as a percentage over the cost. A markup is added into the total cost incurred by the producer of a good or service in order to cover the costs of doing business and create a profit.The …

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