Answer to Question #332880 in Microeconomics for Unknown

Question

The introduction of taxes to the Keynesian model...

O a. Increases investment spending at each positive level of income.

O b. Cause the slope of the consumption curve to become steeper.

O e. Causes the consumption function to shift parallel downwards.

O d. Causes the consumption function to shift parallel upwards.

O c. Flattens the consumption curve.

Answer 1

a. Increases investment spending at each positive level of income.