Assume the economy's consumption and saving schedules simultaneously shift downward.This must be the result of:
A)an increase in disposable income.
B)an increase in household wealth.
C)the expectation of a recession.
D)an increase in personal taxes

Question

Quizplus · Accepted Answer

If personal taxes increase, disposable income decreases, causing a downward shift in both consumption and saving schedules.

Assume the Economy's Consumption and Saving Schedules Simultaneously Shift Downward