Suppose Consumers Save 3 Percent of Their Incomes

question 43

Multiple Choice

Suppose consumers save 3 percent of their incomes. If the government collects 1 dollar in taxes from each taxpayer, private saving will ________ per taxpayer.

• A) decrease by 3 cents
• B) decrease by 97 cents
• C) increase by $1
• D) increase by 97 cents

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Definitions:

Boycott

A protest in which people refuse to buy, use, or participate in something as a way of expressing disapproval or forcing change.

Montesquieu

A French philosopher known for his articulation of the theory of separation of powers, which is implemented in many constitutions around the world.

Tyranny

A form of government in which a single ruler holds absolute power and often governs without regard for justice or the rights of citizens.

French Political

Relating to the politics of France, known for its semi-presidential system, bicameral legislature, and a history of both monarchy and republicanism.