Changes in Taxes and Transfers Affect Planned Spending

question 134

Multiple Choice

Changes in taxes and transfers affect planned spending:

• A)only when there is an expansionary gap.
• B)autonomously.
• C)directly, by changing induced expenditures.
• D)indirectly, by changing disposable income and, consequently, consumption.

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Definitions:

NIDA

The National Institute on Drug Abuse, an American federal government research institute focused on drug abuse and addiction.

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