An increase in autonomous taxes
A) increases autonomous planned spending by an equal amount.
B) decreases autonomous planned spending by an equal amount.
C) increases consumption by that amount times the marginal propensity to consume.
D) decreases saving by that amount times the marginal propensity to save.
D
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What are the five main determinants of consumption spending? Which of these is the most important?
What will be an ideal response?
(Consider This) Which of the following is an example of voter failure?
A. Voters support adding stop lights that would increase congestion and travel costs without increasing safety or convenience. B. Government officials ignore voter calls for regulations that would reduce negative externalities and enhance efficiency. C. Voters wanting greater highway safety are unable to express their preferences on how to achieve it because the voting system doesn't allow it. D. Voters wanting more government services are divided on what services they most prefer, leaving government officials to determine what is best.