Question

If Congress decreases personal income taxes, consumer spending and

unemployment will most likely change in which of the following ways?
a. Consumer Spending / Unemployment
b. Increase / Increase
c. Increase / Decrease
d. Decrease / No change
e. Decrease / Increase
f. Decrease / Decrease

Answer 1

Answer: it increases and decreases

Step-by-step explanation:

Hope this helps

Answer 2

Answer: c. Increase / Decrease

Step-by-step explanation:

If personal income taxes fall, people will have more disposable income to spend on goods and services. The effect of this is that consumption will rise.

With an increase in consumption comes an increase in economic growth which will spur investments as producers aim to produce and supply enough goods and services to satisfy the new demand so they will hire more workers which will lead to a reduction in unemployment.