Which of the Following Will Occur as a Result of a Tax

question 28

Multiple Choice

Which of the following will occur as a result of a tax cut?

• A)private saving decreases
• B)investment decreases
• C)the trade balance improves
• D)the trade balance worsens
• E) the budget deficit decreases

---

Definitions:

Creditor

A person or entity that lends money or extends credit to another party.

Declare Bankruptcy

The formal process by which an individual or business legally declares their inability to pay outstanding debts.

Involuntary Bankruptcy

A legal process initiated by creditors to force a debtor into bankruptcy when they believe the debtor is unable to pay their debts.

Petition

A formal written request, often signed by many people, appealing to authority with respect to a particular cause or concern.