Economics A Level: How can Taxes affect both Savings and Consumption

Question

How can Taxes affect both Savings and Consumption

go kys · Accepted Answer

-Direct Taxation will lead to a Fall in the Consumers Disposable Income, leading to spending Less, and Saving-more. The opposite may be True
-Indirect Taxation can also make Consumers spend less, as the Price will rise. Again, the opposite is True

Economics A Level

How can Taxes affect both Savings and Consumption

-Direct Taxation will lead to a Fall in the Consumers Disposable Income, leading to spending Less, and Saving-more. The opposite may be True -Indirect Taxation can also make Consumers spend less, as the Price will rise. Again, the opposite is True

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