Permanent Tax Cuts Have a Larger Impact on Consumption Spending

question 108

True/False

Permanent tax cuts have a larger impact on consumption spending than temporary ones.

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Definitions:

Disinhibition

A decrease in restraint over one's actions or emotions, often leading to impulsive or inappropriate behavior.

Dishabituation

The restoration of a response that has undergone habituation, typically due to the presentation of a novel stimulus.

Neurotransmitter Release

The process by which neurotransmitters are secreted from neural synapses, facilitating communication between neurons.

Dishabituation

is the renewed response to a stimulus after habituation has occurred, typically due to a novel stimulus interrupting the habituation process.