Suppose Consumers Save 5 Percent of Their Incomes

question 103

Multiple Choice

Suppose consumers save 5 percent of their incomes. If the government collects 100 dollars in taxes from each taxpayer, private saving will ________ per taxpayer.

• A) increase by $105
• B) decrease by $95
• C) decrease by $5
• D) decrease by 95 cents

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Definitions:

Cohesiveness

The quality of forming a united whole or working together in a cohesive and coordinated manner to achieve shared goals.

Explicit Ground Rules

Clearly defined and communicated guidelines or policies intended to set expectations and govern behavior in a specific context.

Outcomes

The results or effects produced by an action, process, or operation, often measured to assess effectiveness.

Procedural Messages

Communications that give instructions or explain how to complete a task or process.