Multiple Choice
When the government reduces taxes, households' take-home pay:
A) increases, households' saving increases and households' consumption increases
B) decreases, households' saving decreases and households' consumption decreases
C) increases, households' saving is unaffected and households' consumption increases
D) increases, households' saving increases and households' consumption is unaffected
Correct Answer:
Verified
Correct Answer:
Verified
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