Suppose Consumers Save 5 Percent of Their Incomes

question 103

Multiple Choice

Suppose consumers save 5 percent of their incomes. If the government collects 100 dollars in taxes from each taxpayer, private saving will ________ per taxpayer.

• A) increase by $105
• B) decrease by $95
• C) decrease by $5
• D) decrease by 95 cents

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Definitions:

Direct Suit

A direct suit is a legal action initiated directly by one party against another for the purpose of resolving a dispute or seeking damages.

Revised Act

An updated or amended version of a statute that reflects changes in the law or its interpretation.

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights and interests in the company.

Board of Directors

A group of elected or appointed members who jointly oversee the activities of a company or organization, making strategic decisions and providing governance.