The USExperience with Tax Cuts and Tax Increases Since 1975 Suggests

question 71

Multiple Choice

The U.S.experience with tax cuts and tax increases since 1975 suggests that

• A)tax cuts always stimulate consumption spending.
• B)tax changes have a stable and predictable effect on consumption spending.
• C)temporary tax changes are less effective than permanent changes.
• D)tax changes have no effect on consumption spending.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.