According to the permanent income hypothesis, taxpayers react to a one-time tax rebate
A) by spending all of the tax rebate.
B) by spending more than the amount of the tax rebate.
C) by saving half of the tax rebate and spending the rest.
D) by saving all of the tax rebate.
D
You might also like to view...
According to the Keynesian theory, inflation
a. can occur at any level of employment. b. can occur only with government spending. c. can occur when aggregate expenditure exceeds output at full employment. d. will occur when planned investment is below planned saving at full employment.
AC is lower in the long run than in the short run because
a. prices often fall, allowing savings on purchases. b. inputs can be combined more efficiently in the long run. c. over time the prices of all inputs tend to decrease. d. AFC falls with output over all ranges of output.
While waiting in line to buy two tacos at 75 cents each, and a medium drink for 80 cents, Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $2.50. For Jordan, the marginal cost of purchasing the third taco would be
What will be an ideal response?
The demand for a monopoly's output is p = 50 - Q. The monopoly's marginal cost is $4 and the market wage is $2. How many units of labor are demanded by the monopoly?
A) L = 46 B) L = 23 C) L = 0 D) L = 10