Solved

If Income Tax Rates Are Increased in an Attempt to Balance

Question 164

Multiple Choice

If income tax rates are increased in an attempt to balance the federal budget, we should expect to see


A) an increase in consumption and a decrease in GDP.
B) an increase in consumption and an increase in GDP.
C) a decrease in consumption and a decrease in GDP.
D) a decrease in consumption and an increase in GDP.

Correct Answer:

verifed

Verified

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

Related Questions