The Keynesian perspective on the effect of an increase in taxes is that this policy action
A) generates reductions in consumption and in saving.
B) generates reductions in consumption and an increase in saving to pay for the new taxes.
C) has no impact on consumption.
D) increases current consumption and reduces future consumption.
Answer: A) generates reductions in consumption and in saving.
You might also like to view...
If the risk associated with a particular outcome is ________, or the value of a particular outcome is ________, then cost-benefit analysis might lead people to take too few precautions
A) overestimated, overestimated B) overestimated; underestimated C) underestimated; overestimated D) underestimated; underestimated
Promoters for the Rolling Stones were clearly "short selling" when
A) they distributed their latest CD to radio stations free of charge. B) they sold their latest CD to retailers at wholesale prices. C) they sold the world-tour concert tickets weeks in advance. D) they promoted the band without Bill Wyman, the original bass player.
The measure of money supply that includes the fewest types of assets:
a. is M4. b. is M2. c. is M3. d. is M1. e. is M0.
The more elastic the supply of a product, the more likely it is that the burden of a tax will
a. fall on sellers. b. fall on buyers. c. fall equally on both buyers and sellers. d. be borne by the public sector, and not by market participants.