Asked by
GENEVIEVE KOCHEL
on Nov 11, 2024Verified
A new tax introduced by the government will:
A) decrease disposable income.
B) increase disposable income.
C) lead to a reduction in government spending.
D) lead to an increase in government spending.
E) have no effect on disposable income.
Disposable Income
Available financial assets to households for investments and outlays after income taxes have been applied.
Government Spending
Expenditures by government bodies on goods and services, including salaries, infrastructure, and welfare programs.
Tax
A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.
- Determine the impact of government spending, taxation, and net taxes on economic results.
Verified Answer
TK
Learning Objectives
- Determine the impact of government spending, taxation, and net taxes on economic results.