In Which of the Following Ways Does Government Affect the Consumption

question 82

Multiple Choice

In which of the following ways does government affect the consumption component of planned aggregate expenditures?

• A)Through net taxes,which change disposable income
• B)By purchasing goods and services,which increase consumption
• C)By using subsidies to encourage firms to invest
• D)By reducing the interest rate to encourage firms to invest
• E)By producing public goods

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Definitions:

Gallbladder

A small organ situated beneath the liver, responsible for storing and concentrating bile.

Duodenum

The first section of the small intestine in most higher vertebrates, where a significant part of digestion occurs.

Bile

A digestive fluid produced by the liver, stored in the gallbladder, and secreted into the small intestine to aid in the digestion and absorption of fats.

Digestive System

The complex series of organs and glands responsible for the digestion and absorption of nutrients, as well as the elimination of waste products.