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

Government expenditure is not directly affected by changes in net taxes. Net taxes refer to taxes paid by individuals and businesses after taking into account any transfer payments received from the government. Therefore, a decrease in net taxes will increase disposable income, leading to an increase in consumption and saving, and potentially lead to an increase in GDP. However, government expenditure is determined by fiscal policy decisions made by the government, not by changes in net taxes.

Which of the Following Will Not Increase When Net Taxes