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Suppose Consumers Save 5 Percent of Their Incomes

Question 70

Multiple Choice

Suppose consumers save 5 percent of their incomes. If the government collects 100 dollars in taxes from each taxpayer, private saving will ________ per taxpayer.


A) increase by $105
B) decrease by $95
C) decrease by $5
D) decrease by 95 cents

Correct Answer:

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