An Increase in Net Taxes

question 30

Multiple Choice

An increase in net taxes

• A)raises aggregate expenditure by raising disposable income,thereby increasing consumption
• B)raises aggregate expenditure by raising disposable income,thereby decreasing consumption
• C)lowers aggregate expenditure by lowering disposable income,thereby increasing consumption
• D)lowers aggregate expenditure by lowering disposable income,thereby decreasing consumption
• E)has no effect on aggregate expenditure

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Definitions:

Extended Families

Family groups that extend beyond the immediate nuclear family to include grandparents, aunts, uncles, and other relatives.

Poverty

A socioeconomic condition characterized by a significant lack of financial resources and essentials for a comfortable living standard.

Grandparents

The parents of one's parents, often playing significant roles in family structure, support, and intergenerational relationships.

Stressed

Experiencing mental or emotional strain or tension resulting from adverse or demanding circumstances.