When Consumption and Saving Are Graphed Relative to Real GDP

question 199

Multiple Choice

When consumption and saving are graphed relative to real GDP, an increase in personal taxes will shift

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

---

Definitions:

Contingency Management

An operant conditioning treatment program that offers clients incentives (such as vouchers, prizes, cash, or privileges) that are contingent on the submission of drug-free urine specimens.

Reinforcement

In psychology, a process by which a behavior is strengthened or increased, often through rewards or consequences.

Business Principles

Fundamental guidelines or rules that are used to conduct business activities and decisions ethically and effectively.

Role Playing

A technique in therapy or training where individuals assume roles and act them out in scenarios, to explore behavior, practice social skills or gain insight.