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:

Psychological Problems

Refer to mental health issues that affect mood, thinking, and behavior, often requiring clinical attention.

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Therapy refers to a range of treatments designed to relieve or heal disorders, often involving counseling or specific physical techniques.

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A treatment method for mental health disorders that involves talking with a psychologist or other mental health provider.

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