Which of the Following Is Not True of the American

question 135

Multiple Choice

Which of the following is not true of the American opportunity credit?

• A) A taxpayer may not claim a credit unless the taxpayer pays a dependent's qualifying educational expenses.
• B) It is phased out based on the taxpayer's AGI.
• C) A taxpayer with multiple eligible dependents can claim a credit for each dependent's qualifying expenses.
• D) The credit is available for students during their first four years of postsecondary education only.

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Definitions:

Price Elastic

Pertains to a measurement in economics of how responsive an economic variable's quantity is to a change in its price.

Total Budget

The complete amount of money allocated for a particular purpose, project, organization, or time period.

Cross Elasticity

Cross elasticity measures the responsiveness of the demand for one good to a change in the price of another good, indicating their substitutability or complementarity to consumers.

Complementary Goods

Products or services that are used together, where the increase in demand for one leads to an increase in demand for the other.