Answer to Question #3641 in Macroeconomics for amy

Question

If personal taxes are increased by $10 billion, we can expect that consumers will reduce
a. spending by $10 billion.
b. spending by more than $10 billion.
c. spending by less than $10 billion.
d. saving by $10 billion.
e. saving by more than $10 billion.

Answer 1

c. spending by less than $10 billion.