Ask Question
20 June, 19:57

According to the model developed in Chapter 3, when government spending increases and taxes increase by an equal amount:

A) consumption and investment both increase.

B) consumption and investment both decrease.

C) consumption increases and investment decreases.

D) consumption decreases and investment increases.

+1
Answers (1)
  1. 20 June, 20:30
    0
    Correct answer is (B) consumption and investment both decrease.

    Explanation:

    when government spending increases and taxes increase by an equal amount there will be decrease in both consumption and investment.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “According to the model developed in Chapter 3, when government spending increases and taxes increase by an equal amount: A) consumption and ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers