If taxes rise at a faster rate than incomes,consumers will
A)have less disposable income and try to economize.
B)feel more confident in the government and therefore spend more money.
C)be able to afford to take a vacation.
D)recognize that it's the perfect opportunity to buy a car.
E)react by voting for all incumbent members of Congress.

Question

Quizplus · Accepted Answer

If taxes rise at a faster rate than incomes, consumers will have less disposable income and try to economize. This means they will have less money to spend on goods and services, which can slow down the economy. They may also look for ways to save money, such as cutting back on non-essential expenditures or choosing lower-priced alternatives.

If Taxes Rise at a Faster Rate Than Incomes,consumers Will