Suppose Consumers Save 3 Percent of Their Incomes

question 43

Multiple Choice

Suppose consumers save 3 percent of their incomes. If the government collects 1 dollar in taxes from each taxpayer, private saving will ________ per taxpayer.

• A) decrease by 3 cents
• B) decrease by 97 cents
• C) increase by $1
• D) increase by 97 cents

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Definitions:

Behavioral Attributes

Characteristics or qualities of an individual's actions or conduct.

Wealthy Relative

A family member who possesses considerable financial resources or wealth.

Life-Transition Event

Significant life changes that require a person to adapt, which can include events like marriage, retirement, or loss of a loved one.

Unexpected Wanted Event

A surprising occurrence that, despite being unforeseen, is welcomed or desired by those involved.