Economics 2281 · O Level · Households

Households — practice question

In what ways do high direct taxes influence spending, and how do high interest rates influence saving by wage-earners?

  • Aspending: decrease; saving: decrease
  • Bspending: decrease; saving: increase
  • Cspending: increase; saving: decrease
  • Dspending: increase; saving: increase

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI