If Government Spending Increases by $1 Million While Net Taxes

question 71

Multiple Choice

If government spending increases by $1 million while net taxes are unchanged, then:

• A)public saving increases.
• B)public saving decreases.
• C)public saving does not change.
• D)private saving increases.

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Definitions:

Deductive Reasoning

An analytic technique in which a verdict is influenced by the coalition of multiple premises typically considered correct.

Intuitive Thought

A cognitive process that involves making judgments and solving problems spontaneously without the need for conscious reasoning.

Concrete Reasoning

Thinking that is based on what is physically present and tangible rather than abstract or theoretical concepts.

Dual-Processing

A model in cognitive science and psychology that suggests there are two different systems or ways of thinking in the brain: one that is fast, automatic, and emotional, and another that is slower, more deliberate, and logical.