If the Government Increases Taxes, Which of the Following Is

question 34

Multiple Choice

If the government increases taxes, which of the following is LEAST likely to occur?

• A)a decrease in private domestic saving
• B)a decrease in consumption
• C)an increase in private domestic investment
• D)a decrease in net exports
• E)a decrease in national income

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Definitions:

Actual Operations

This term might be referring to the real, day-to-day activities or processes carried out by a business or organization, but it's not a standard accounting or finance term in itself.

Sales Budget Report

A financial plan that estimates future sales in units or monetary terms, often used to guide pricing, production, and marketing strategies.

Favorable Difference

A financial term indicating that actual revenues are higher than planned revenues or actual expenses are lower than planned expenses.

Unfavorable Difference

A situation where actual costs exceed the standard or expected costs, often referred to in budgeting and variance analysis.