Consider the following income/expenditure diagram in the simple Keynesian model. If taxes, T, were increased, then Group of answer choices A) The Y = C+S+T line would shift to the right, and equilibrium Y would increase. B) the C+I+G line would shift downward, and equilibrium Y would decrease. C) The Y = C+S+T line would shift to the left, and equilibrium Y would decrease. D) neither of the lines would shift, and equilibrium Y would stay the same. E) the C+I+G line would shift upward, and equilibrium Y would increase.
Consider the following income/expenditure diagram in the simple Keynesian model. If taxes, T, were increased, then Group of answer choices A) The Y = C+S+T line would shift to the right, and equilibrium Y would increase. B) the C+I+G line would shift downward, and equilibrium Y would decrease. C) The Y = C+S+T line would shift to the left, and equilibrium Y would decrease. D) neither of the lines would shift, and equilibrium Y would stay the same. E) the C+I+G line would shift upward, and equilibrium Y would increase.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Consider the following income/expenditure diagram in the simple Keynesian model.
If taxes, T, were increased, then
Group of answer choices
A) The Y = C+S+T line would shift to the right, and equilibrium Y would increase.
B) the C+I+G line would shift downward, and equilibrium Y would decrease.
C) The Y = C+S+T line would shift to the left, and equilibrium Y would decrease.
D) neither of the lines would shift, and equilibrium Y would stay the same.
E) the C+I+G line would shift upward, and equilibrium Y would increase.
Transcribed Image Text:8. Consider the following income/expenditure diagram in the simple Key
C, I, G, S, T
Y-C+S+T
C+1+G
Y
If taxes. T. were increased. then
The Y C+S+T line would shift to the right, and eguilibrium Y would increase
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