Which of the following will NOT increase when net taxes decrease?
A) saving
B) disposable income
C) consumption
D) government expenditure

Question

Which of the following will NOT increase when net taxes decrease?  
A) saving 
B) disposable income 
C) consumption 
D) government expenditure

Quizplus · Accepted Answer

Government expenditure is unrelated to changes in net taxes since it refers to the amount of money the government spends on goods and services, not the amount of taxes collected from individuals and businesses. Saving, disposable income, and consumption are all likely to increase when net taxes decrease.

Which of the Following Will NOT Increase When Net Taxes