If the government increases the income tax rate, consumers have:
A) less to spend and will reduce their consumption.
B) more to spend and will reduce their consumption.
C) less to spend and will increase their consumption.
D) more to spend and will increase their consumption.
Correct Answer:
Verified
Q12: Consumption depends on:
A) total income.
B) disposable income.
C)
Q22: Government decreasing taxes is an example of:
A)
Q24: Disposable income is not:
A) total income minus
Q25: If the fiscal policy makers aim to
Q26: If the government increases the income tax
Q28: Disposable income is defined to be:
A) total
Q29: If the government increases the income tax
Q30: If the government decreases the income tax
Q31: If the government enacts contractionary fiscal policy,
Q32: If the government were to reduce its
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