If Net Taxes Rise by $150 Billion,would You Expect Household

question 4

Essay

If net taxes rise by $150 billion,would you expect household saving to fall by $150 billion,by more than $150 billion,or by less than $150 billion?

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Definitions:

Consumption Possibilities

The range of goods and services that can be consumed given a consumer's income and prices.

Physical Capital

Tangible assets used in the production of goods and services, such as machinery, buildings, and equipment.

Production Possibilities Curve

A graph that shows the different quantities of two goods that an economy can produce using all of its resources efficiently.

Scarcity

Fundamental concept of economics that indicates that there is less of a good freely available than people would like.