Ceteris paribus, increases in personal income tax rates __________ consumption expenditures.
A)increase
B)decrease
C)have no affect on
D)None of the above is correct.

Name: Ceteris paribus, increases in personal income tax rates __________ consumption expenditures. A)increase B)decrease C)have no affect on D)None of the above is correct.
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Question

Quizplus · Accepted Answer

Increases in personal income tax rates decrease consumption expenditures as individuals have less disposable income to spend on goods and services.

Ceteris Paribus, Increases in Personal Income Tax Rates __________ Consumption