As the Consumption and Saving Schedules Relate to Real GDP

question 205

Multiple Choice

As the consumption and saving schedules relate to real GDP, an increase in taxes will shift

• A)upward both the consumption and saving schedules.
• B)downward both the consumption and saving schedules.
• C)the consumption schedule upward and the saving schedule downward.
• D)the saving schedule upward and the consumption schedule downward.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry and the economy.

Resources

Inputs used in the production of goods and services, such as labor, capital, land, and entrepreneurship.

Marginal Rate

The rate at which one variable changes relative to a change in another variable, often used in the context of taxes or production costs.

Transformation

The process of changing something from one form or state to another, often seen in context with business, personal development, or technology.