An Economic Model That Sometimes Makes Incorrect Predictions May Be

question 67

Multiple Choice

An economic model that sometimes makes incorrect predictions may be used by economic decision makers:

• A)under no circumstances.
• B)only if its assumptions are detailed and realistic.
• C)if it is mathematical and computerized.
• D)if it is simple enough for a child to understand.
• E)until a better model is developed.

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Definitions:

AGI

Adjusted Gross Income; an individual's total gross income minus specific deductions, used to determine taxable income on a federal tax return.

Single

A filing status for unmarried taxpayers who do not qualify for any other filing status on their tax return.

American Opportunity Tax Credit

A refund for allowable educational fees paid for a qualifying scholar during their first four years of advanced education.

Qualifying Expenses

Specific expenses that meet criteria set by tax laws or other regulations for deduction or special treatment.