According to the Keynesian Approach, a Decrease in Taxes

question 167

Multiple Choice

According to the Keynesian approach, a decrease in taxes

• A) will increase consumption exactly by the amount of the taxes.
• B) will increase consumption by an amount of less than the change in taxes.
• C) will not impact consumption, as most consumption is autonomous.
• D) will decrease consumption, as the government will have to spend less.

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Definitions:

Pelvic Inflammatory Disease

An infection of the female reproductive organs, often caused by sexually transmitted bacteria.

Abbreviation

A clipped version of a word or phrase.

Papanicolaou

A test, also known as a Pap smear, used to detect cervical cancer in women, involving the collection of cells from the cervix.

Smear

a thin layer of a substance spread over a surface, especially for laboratory examination.