If consumption and investment spending decline,then state and local government spending is likely to
A)Decline,leading to more economic instability.
B)Increase,leading to more economic instability.
C)Decline,leading to less economic instability.
D)Increase,leading to less economic instability.

Question

Quizplus · Accepted Answer

State and local governments may experience decreased revenue due to lower tax collections from decreased consumption and investment spending. This can lead to budget cuts and decreased spending, which can further worsen the economic instability.

If Consumption and Investment Spending Decline,then State and Local Government