Answered: When government increases a fixed tax,…

When government increases a fixed tax, consumption schedule a. shifts downward in a parallel manner. b. shifts upward in a parallel manner. c. becomes vertical. d. becomes horizontal.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 24RQ: Have spending and taxes by state and local governments In the United States had a generally upward...

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Question

When government increases a fixed tax, consumption schedule

	a.	shifts downward in a parallel manner.
	b.	shifts upward in a parallel manner.
	c.	becomes vertical.
	d.	becomes horizontal.

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