Question

Which of these is MOST LIKELY to occur after the government increases taxes?

A) Annual deficits increase.
B) The national debt increases.
C) Consumer spending decreases.
D) Government programs decrease.

Answer 1

C) Consumer spending decreases.:

Answer 2

Answer: C) Consumer spending decreases.

Step-by-step explanation:

According to the question, as tax on product and services increase, more financial charges is to be paid by people compulsorily which impacts their disposable income through decrement .Thus, people will tend to spend less on purchasing things due money out of household is being decreased .

Other options are incorrect because government program do not tends to decrease, national debt do not increase and neither annual deficit gets more.Thus, the correct option is option(C).