According to the Keynesian Approach, an Increase in Taxes

question 270

Multiple Choice

According to the Keynesian approach, an increase in taxes

• A) will reduce consumption exactly by the amount of the taxes.
• B) will reduce consumption by an amount less than the change in taxes.
• C) will not impact consumption, as most consumption is autonomous.
• D) will increase consumption, as the government will spend the extra tax revenue and that increases consumption.

---

Definitions:

Embryo

An early stage of development in multicellular organisms after fertilization and before the fetus stage in humans.

Conception

The union of a sperm cell and an ovum that occurs when the chromosomes of each of these cells combine to form 23 new pairs.

Infants

Young children from birth to one year of age, who are in the earliest stages of childhood development.

Speech Sounds

The distinct units of sound in a language that distinguish one word from another.