A Decrease in Net Taxes

question 129

Multiple Choice

A decrease in net taxes:

• A)raises aggregate expenditure by raising disposable income,thereby increasing consumption.
• B)raises aggregate expenditure by raising disposable income,thereby decreasing consumption.
• C)lowers aggregate expenditure by lowering disposable income,thereby decreasing consumption.
• D)lowers aggregate expenditure by lowering disposable income,consumption remaining constant.
• E)has no effect on aggregate expenditure.

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Definitions:

Preferred Providers Organizations

A type of health insurance plan that offers a network of healthcare providers from which patients can choose at a lower cost.

Insured Individual

A person covered by an insurance policy, receiving protection against specified risks in exchange for premiums paid to the insurer.

Insurer

An entity that provides insurance coverage, assuming the risk of loss in exchange for premium payments.

Copayments

Fixed amounts paid by patients for healthcare services, medication, or other goods, with the remaining costs covered by their insurance provider.