A/an ________ in taxes will decrease consumption spending, and a/an________ in transfer payments will increase consumption spending.
A)increase; increase
B)decrease; increase
C)increase; decrease
D)decrease; decrease

Question

Quizplus · Accepted Answer

An increase in taxes reduces disposable income, leading to decreased consumption spending. Conversely, an increase in transfer payments (like social security or unemployment benefits) boosts disposable income, thereby increasing consumption spending.

A/an ________ in Taxes Will Decrease Consumption Spending, and A/an________

A/an in Taxes Will Decrease Consumption Spending, and A/an