Planned expenditures ________.
A)are directly affected by government purchases
B)increase when there is a reduction in taxes
C)decrease when disposable income decreases
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Planned expenditures are influenced by various factors including government purchases, taxes, and disposable income. Government purchases directly inject money into the economy, affecting planned expenditures. A reduction in taxes increases disposable income, which can lead to an increase in planned expenditures. Similarly, a decrease in disposable income generally leads to a decrease in planned expenditures, as individuals and businesses have less money to spend.

Planned Expenditures ________