Which of the following will not increase when net taxes decrease?
A)Saving
B)Disposable income
C)Consumption
D)Government expenditure
E)GDP

Question

Quizplus · Accepted Answer

When net taxes decrease, government expenditure is not expected to increase. This is because a decrease in net taxes is expected to lead to an increase in disposable income and consumption, which in turn could lead to an increase in GDP. However, government expenditure is determined by the government's budgetary plans which may or may not change depending on the circumstances.

Which of the Following Will Not Increase When Net Taxes