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.

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Definitions:

Antacids

Medications that neutralize stomach acid to relieve symptoms of heartburn and indigestion.

Antiemetic

A drug or medication used to prevent or treat nausea and vomiting.

Anticoagulants

Substances that prevent clotting.

Lovenox

A brand name for enoxaparin, an anticoagulant medication used to prevent and treat blood clots.