Consumption expenditure tends to increase when consumers have ...

[APUS57]

Consumption expenditure tends to increase when consumers have higher levels of debt.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Assume an economy has automatic stabilizers in place that include a progressive tax structure and a transfer payment system. Then in a period of high economic growth and high inflation, we would expect:
 a. tax revenues to fall and unemployment compensation to rise.
  b. average tax rates and welfare payments to decline.
  c. the national debt to become larger.
  d. average tax rates and government revenues to rise.
  e. government spending on social security benefits to rise.

[Kedrick2014]

Answer to Question 1

False

Answer to Question 2

d