Why Did Britain Assume That American Colonists Would Cooperate with New

question 8

Multiple Choice

Why did Britain assume that American colonists would cooperate with new tax measures imposed on them?

• A)The taxes were necessitated by a war fought to increase the colonists' security.
• B)The members of Parliament elected by the colonists voted for them.
• C)The American colonists had formally agreed to these taxes previously.
• D)The taxes were levied on a subordinate people existing by the will of its mother nation.
• E)Colonial governors understood the need to relieve the burden on English taxpayers.

---

Definitions:

Negative APS

Refers to a situation where average propensity to save is below zero, indicating that consumption exceeds income, leading to dissavings.

Disposable Income

The net income available to an individual or household after taxes have been deducted, used for savings or spending on goods and services.

Induced Consumption

An increase in spending on goods and services caused by an increase in income, reflecting a direct relationship between income levels and consumer spending.

APS

Average Propensity to Save, the fraction of income that is saved rather than spent on consumption goods.