For a Given Level of National Income, a Decrease in Government

question 91

Multiple Choice

For a given level of national income, a decrease in government tax revenues will cause

• A)an increase in national saving.
• B)a decrease in consumption.
• C)no effect on national saving.
• D)an increase in the growth rate.
• E)a decrease in national saving.

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Definitions:

Market System

An economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses.

Business Risk

The exposure a company or investor has to factor(s) that will lower its profits or lead it to fail.

Business Risk

The exposure to factors that may cause a business to experience lower than expected profits or even losses, including market changes, regulatory changes, and operational failures.

Macroenconomy

The branch of economics that studies the behavior and performance of an economy as a whole, focusing on national income, unemployment, and inflation.