When taxes rise at a faster rate than does disposable income, what must consumers do?
A)economize
B)go on vacation
C)retire early
D)spend more

Question

Quizplus · Accepted Answer

When taxes rise at a faster rate than disposable income, consumers must economize, meaning they will have to cut back on their spending or find ways to save money. This is because they have less disposable income due to the increase in taxes, which leaves them with less money to spend on other things. Going on vacation or retiring early would not be viable options as they require more funds, while spending more would only worsen the situation.

When Taxes Rise at a Faster Rate Than Does Disposable