Ayushi posted an Question
August 13, 2020 • 18:08 pm 30 points
  • UGC NET
  • Economics

69 payments will increase consumption spending. in taxes will decrease consumption spending and - in transfer (1) an increase, a decrease (2) an increase, an in

69 payments will increase consumption spending. in taxes will decrease consumption spending and - in transfer (1) An increase, a decrease (2) An increase, an increase (3) A decrease, a decrease (4) A decrease, an increase

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    Nidhi taparia best-answer

    69. Option (2) is right. When taxes rise, people are left with lesser portions of their incomes to spend. So consumption spending falls. On the other hand, when transfer payments rise, they act as bonuses on income. So consumption spending rises.

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