How Will the Introduction of an Autonomous Net Tax Affect

question 145

Multiple Choice

How will the introduction of an autonomous net tax affect consumption?  

• A) through a change in government spending 
• B) through a change in disposable income 
• C) through its effect on investment 
• D) through its effect on net exports

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Definitions:

Flexible Budgets

Budgets that adjust or flex with changes in volume or activity, allowing for more accurate comparisons to actual results.

Planning and Control

Processes used by management to establish objectives, execute plans to meet those objectives, and monitor progress.

Responsibility Accounting

An accounting system that collects, summarizes, and reports financial information about different areas of responsibility within an organization.

Responsibility Centers

Divisions or units within an organization for which managers are accountable for certain activities or financial outcomes.