If the Time Path of Government Purchases Does Not Change

question 53

Multiple Choice

If the time path of government purchases does not change and the government cuts current assets income taxes, then:

• A)households save more and consume less in the present.
• B)households save and consume less in the present.
• C)households save less and consume more in the present.
• D)households save and consume more in the present.

---

Definitions:

Uncertainty In Demand

Uncertainty in demand refers to the unpredictable fluctuations in customer demand for goods or services, making inventory and production planning challenging.

Inflexible Transportation Modes

Transportation methods that offer limited flexibility in operations, schedules, or routes, often leading to challenges in adapting to changing supply chain needs.

Expensive

Having a high price or cost; signifying that a good or service costs a lot, often more than what is considered reasonable or affordable.

Aggregate

A total or combined amount, sum, or mass made up of distinct or varied parts.