If Government Purchases Decreases by $1 Million While Net Taxes

question 165

Multiple Choice

If government purchases decreases by $1 million while net taxes are unchanged, then:

• A) public saving increases.
• B) public saving decreases.
• C) public saving does not change.
• D) private saving increases.

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Definitions:

Increasing Basicity

Describes the trend or sequence in which the ability of a substance to act as a base increases.

Increasing

Becoming larger or greater in size, number, value, or amount.

pKa

A quantitative measure that reflects the acid strength of a substance; the lower the pKa value, the stronger the acid.

Methanol

A light, volatile, colorless liquid with a distinctive alcoholic odor, used as an antifreeze, solvent, fuel, and as a denaturant for ethanol.