In the Event Consumers Expected a Tax Cut in the Future

question 18

Multiple Choice

In the event consumers expected a tax cut in the future, forward-looking consumption behavior on their part would bring about

• A) a leftward shift of the IS curve as they anticipated higher future budget deficits.
• B) a leftward shift of the IS curve in response to an expected decrease in government future benefits.
• C) a rightward shift of the IS curve since they perceive their lifetime disposable income to have increased.
• D) a rightward shift of the IS curve in response to an expected decrease in government future benefits.
• E) a leftward shift of the IS curve since they perceive their lifetime disposable income to have increased.

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Definitions:

Ingratiation

A social influence strategy where an individual attempts to make themselves more likeable or attractive to another, often through flattery or favors.

Meta-Communication

Communication about communication, referring to the ways in which individuals convey how their messages should be interpreted.

Semantics

The branch of linguistics concerned with the meaning of words, phrases, and sentences.

Language Routines

Repeated patterns or sequences of language used in communication, often unconsciously, that serve specific social functions.