A Decrease in Lump-Sum Taxes Will

question 337

Multiple Choice

A decrease in lump-sum taxes will

• A) make the consumption function flatter.
• B) make the consumption function steeper.
• C) shift the consumption function downward.
• D) shift the consumption function upward.

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Definitions:

Uniform Distribution

A statistical distribution where all outcomes are equally likely over a specified range.

Random Variable

A numeric variable influenced by the randomness of certain phenomena.

Probability

A measure of the likelihood that a particular event will occur, often expressed as a number between 0 and 1.

Uniform Distribution

A distribution of probabilities where each possible outcome is equally probable.