Author Question: Which of the following correctly describes the effects of a decrease in net taxes? a. Disposable ... (Read 53 times)

casperchen82 · **on:** Jun 30, 2018

Which of the following correctly describes the effects of a decrease in net taxes?
a. Disposable income increases, consumption decreases, and saving decreases.
b. Disposable income increases, consumption increases, and saving increases.
c. Disposable income decreases, consumption increases, and saving increases.
d. Disposable income decreases, consumption decreases, and saving decreases.
e. There is no effect on either disposable income, consumption, or saving.

Question 2

For most firms, the costs of energy and raw materials will be total fixed costs.
a. True
b. False
Indicate whether the statement is true or false