In a Closed Economy, If Taxes Fall and Consumption Rises

question 18

True/False

In a closed economy, if taxes fall and consumption rises, then private saving must fall.

---

Definitions:

Tay-Sachs Disease

A disorder that produces blindness and muscle degeneration prior to death; there is no treatment.

Muscle Degeneration

The decline in muscle strength and mass, often due to aging, disease, or lack of use.

Fragile X Syndrome

A disorder produced by injury to a gene on the X chromosome, producing mild to moderate mental retardation.

Sickle-Cell Anemia

A genetic blood disorder causing red blood cells to assume a rigid, sickle shape, leading to blockages in blood flow and various complications.