If Households View a Tax Cut as Temporary, Then the Tax

question 56

Multiple Choice

If households view a tax cut as temporary, then the tax cut

• A)has no effect on aggregate demand.
• B)has more of an effect on aggregate demand than if households view it as permanent.
• C)has the same effect as when households view the cut as permanent.
• D)has less of an effect on aggregate demand than if households view it as permanent.

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Definitions:

Distracted

A state of reduced concentration or diverted attention away from the primary task or subject.

Inattentional Blindness

A psychological phenomenon where an individual fails to perceive an unexpected stimulus in plain sight due to the focus of attention elsewhere.

Visible Objects

Items or entities that can be seen by the human eye under normal light conditions.

Selective Attention

The process by which a person focuses on one particular object or task, ignoring other stimuli or information.