Suppose Consumers Save 8 Percent of Their Incomes

question 81

Multiple Choice

Suppose consumers save 8 percent of their incomes. If the government collects 4 dollar in taxes from each taxpayer and invested it in infrastructure, total social investment will ________ per taxpayer.

• A) increase by $ 4.32
• B) increase by $3.68
• C) increase by 32 cents
• D) decrease by 64 cents

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Definitions:

Circumference

The perimeter or boundary line of a circle, often measured to understand the size or to describe the distance around it.

Bevel Gear

A type of gear where the axes of the two shafts intersect and the tooth-bearing faces of the gears themselves are conically shaped, often used in differential drives.

Addendum

The radial distance from the pitch circle of a gear to the top of the teeth.

Dedendum

The distance from the pitch circle of a gear to the bottom of the tooth groove.