The introduction of a tax by the government will: a. affect government spending since the government levies
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Question:
The introduction of a tax by the government will:
a. | affect government spending since the government levies the tax. | |
b. | affect consumption through its effect on investment. | |
c. | have no effect on real GDP since real GDP comprises consumption expenditure, investment expenditure, and government expenditure. | |
d. | increase real GDP since it enables the government to increase spending. | |
e. | affect consumption through a change in disposable income. |
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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