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Holding All Else Constant,an Increase in Consumption Taxes,such as Sales

question 69

Multiple Choice

Holding all else constant,an increase in consumption taxes,such as sales taxes or a VAT,will ________ the price of consumption goods and ________ output.


Definitions:

John Partner's, Capital

Represents the account on a balance sheet indicating the value of an owner's (John Partner, in this case) interest in the business.

Cash

A form of currency that includes coins and currency notes, used as a medium of exchange.

Accounts Payable

A liability on a company's balance sheet representing the amounts due to suppliers by the business.

Cash

Money in the form of coins or notes that is readily available for transactions.

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