If taxes rise at a faster rate than incomes, consumers will
A) have less disposable income and try to economize.
B) feel more confident in the government and therefore spend more money.
C) use cash for purchases such as a vacation.
D) recognize that it is the perfect opportunity to buy a car or other expensive products on credit.
E) react by voting for all incumbent members of Congress.

Question

Quizplus · Accepted Answer

When taxes rise faster than incomes, consumers have less disposable income, leading them to cut back on spending and try to economize.

If Taxes Rise at a Faster Rate Than Incomes, Consumers