How Does Government Affect the Consumption Component of Planned Aggregate

question 91

Multiple Choice

How does government affect the consumption component of planned aggregate expenditures?  

• A) through net taxes, which change disposable income 
• B) by purchasing goods and services, which increase consumption 
• C) by using subsidies to encourage firms to invest 
• D) by using net taxes to encourage firms to invest

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Definitions:

Design

A process involving creativity, innovation, and problem-solving to meet user needs or preferences, often resulting in a product, system, or service.

Imagination-Based Strategies

Actions that involve suspending disbelief and dropping constraints in order to create unrealistic states or fantasies.

Suspends Disbelief

A condition where one temporarily accepts as believable events or characters that would ordinarily be seen as incredible or implausible.

Idea Generation

The inventive method of creating, shaping, and transmitting original ideas.