The Keynesian Perspective on the Effect of an Increase in Taxes

question 260

Multiple Choice

The Keynesian perspective on the effect of an increase in taxes is that this policy action

• A) generates reductions in consumption and in saving.
• B) generates reductions in consumption and an increase in saving to pay for the new taxes.
• C) has no impact on consumption.
• D) increases current consumption and reduces future consumption.

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Definitions:

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Viral infections manifesting as small, cauliflower-like lesions on the genital or anal areas, associated with HPV.

Papules

Elevated, solid skin lesions that are typically less than 1 centimeter in diameter.

Penis

A male reproductive organ involved in sexual intercourse and urination.

Repressed Memories

Memories that have been unconsciously blocked due to being associated with a high level of stress or trauma, yet may influence behavior.