Question:

Consumer spending will rise, if:?

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A) government transfers rise.

B) taxes increase.

C) government transfers fall.

D) all of the above occur.

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3 ANSWERS


  1. Technically, none of these neccessarily will lead to any rise.  Theorectically though, A would be the answer, since it increases consumer income, while the other two shrink consumer income.


  2. A) government transfers rise.

    Because it increases disposable income.

  3. The dollar keeps weakening so when we buy stuff like oil from other country's we get less for our money.

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