Aggregate demand

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Reference no: EM1368302 , Length: 1 Page

What happens to aggregate demand when transfer payments and the taxes to pay them both rise by the same amount?

Will consumers always spend the same percentage of any tax cut? Why might they spend more or less the usual?

 

Reference no: EM1368302

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Aggregate demand : What happens to aggregate demand when transfer payments and the taxes to pay them both increase by the same amount?
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