A One-Time Cut in Taxes

question 45

Multiple Choice

A one-time cut in taxes

• A)can result in inflation.
• B)can result in a one-time increase in the price level, but cannot result in inflation.
• C)can result in a one-time decrease in the price level, but cannot result in inflation.
• D)will cause a dollar-for-dollar increase in the money supply.

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Definitions:

Foreign Corrupt Practices Act

U.S. legislation aimed at preventing companies and their representatives from bribing foreign officials to gain a business advantage.

Bribery of Foreign Officials

The act of offering or giving anything of value to foreign government officials with the intent to influence their decisions in favor of the briber.

Slamming

An illegal telecommunications practice where a customer's telephone service is switched to another provider without their consent.

Consumers

Individuals or groups that purchase goods or services for personal use.