Changes in Taxes and Transfers Affect Planned Spending

question 134

Multiple Choice

Changes in taxes and transfers affect planned spending:

• A)only when there is an expansionary gap.
• B)autonomously.
• C)directly, by changing induced expenditures.
• D)indirectly, by changing disposable income and, consequently, consumption.

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Definitions:

Injuries

Physical harm or damage to a person's body.

Life Insurance Proceeds

The money paid out by a life insurance company to the beneficiary upon the insured's death.

Taxable

Describes income, goods, or transactions subject to taxation, according to government laws and regulations.

Transactions

Transactions are actions carried out between two or more parties that involve the exchange of goods, services, or financial assets.