If government spending increases by $1 million while net taxes are unchanged, then:
A)public saving increases.
B)public saving decreases.
C)public saving does not change.
D)private saving increases.

Name: If government spending increases by $1 million while net taxes are unchanged, then: A)public saving increases. B)public saving decreases. C)public saving does not change. D)private saving increases.
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Question

Quizplus · Accepted Answer

In this case government spending increased with no change in tax revenue, so public savings decreases.

If Government Spending Increases by $1 Million While Net Taxes