The increase in the personal consumption expenditure increases the aggregate demand (AD).
AD refers to the sum total of the demand for final goods and services in an economy at a given period of time. It is also called as Domestic Final Demand (DFD).
Answer: 1. the percentage of income paid as taxes falls as income rises
Explanation: A REGRESSIVE TAX is a tax imposed in a way or manner in which the tax rate decreases as the amount subject to taxation increases. "Regressive" describes a distribution effect on expenditure or income, referring to the way the rate progresses from high to low, so in this case the average tax rate exceeds the marginal tax rate.
<u>Answer:</u>
<em>a. Make shareholders as wealthy as possible by investing in real assets.</em>
<u>Explanation:</u>
We can imagine the <em>financial manager </em>doing several things on behalf of the firm’s stockholders. For example, the manager might do is make the shareholders as wealthy as possible by<em> investing in real assets</em>.
The shareholders has <em>paper financial leverage</em> and only the value of decomposition of the firm increases, it means that the shareholders have the ability to do the <em>financial leverage.</em>
And the hell used to decompose in the market which it is good to I must be have to the ability to do it in a simple way to think in <em>a simple language.</em>
