An increase in national income is likely to ?
Correct answer: A. Decrease tax receipts
- A. Decrease tax receipts
- B. Worsen the balance of trade
- C. Automatically cause an increase in government spending
- D. causes an increase in injections into the economy
Explanation
Higher national income generally produces higher tax receipts because taxable incomes and spending tend to rise. Government spending does not automatically rise, and the other options are not the most direct general effect.
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