Solved

According to the Keynesian Approach, an Increase in Taxes

Question 274

Multiple Choice

According to the Keynesian approach, an increase in taxes


A) will reduce consumption exactly by the amount of the taxes.
B) will reduce consumption by an amount less than the change in taxes.
C) will not impact consumption, as most consumption is autonomous.
D) will increase consumption, as the government will spend the extra tax revenue and that increases consumption.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents