Holding All Else Constant,a Decrease in Consumption Taxes,such as Sales

question 35

Multiple Choice

Holding all else constant,a decrease in consumption taxes,such as sales taxes or a VAT,will ________ aggregate expenditure and ________ employment.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decrease

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Definitions:

Schizophrenia

A severe psychological condition marked by disturbances in thinking, sensing, emotional regulation, and social behavior.

Obsessive-compulsive

Pertaining to a disorder characterized by recurrent, unwanted thoughts (obsessions) and repetitive behaviors (compulsions).

Histrionic Personality

A personality disorder characterized by a pattern of excessive emotionality and attention-seeking behavior.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a manual published by the American Psychiatric Association that classifies and provides diagnostic criteria for mental disorders.