The Regular Standard Deduction Is Available to Which One of the Following

question 90

Multiple Choice

The regular standard deduction is available to which one of the following taxpayers?

• A)married taxpayer filing a separate return where the other spouse itemizes
• B)a person who has only unearned income and is a dependent of another
• C)an individual filing a return for a period of less than 12 months because of a change in accounting period
• D)a same sex couple married under New York state law.

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Definitions:

Marginal Propensity

The fraction of an additional unit of income that is spent on consumption rather than being saved.

Consumption Function

The relationship in the economy between consumption and income, other things constant.

Saving Function

The relationship between the level of saving and the level of income, typically showing that saving increases as income increases.

Consumption Function

An economic formula that expresses the relationship between total consumption and gross national income, indicating how much households are likely to spend.