If the Government Levies a One-Time Temporary Tax on the Young

question 87

Multiple Choice

If the government levies a one-time temporary tax on the young and gives the proceeds to the elderly, and both generations follow the life-cycle consumption pattern and are altruistically linked:

• A) both the young and the old will consume more.
• B) there will be a net increase in overall consumption.
• C) there will be a net decrease in overall consumption.
• D) there will be no change in overall consumption.

---

Definitions:

.pst File

A file format used by Microsoft Outlook to store email messages, contacts, calendar events, and other data on a local computer.

Email Messages

Electronic communications sent over the internet, allowing users to exchange digital messages through email platforms.

Font

The design and appearance of printed or displayed text characters, distinguished by characteristics like size, weight, and style.

Font Size

The size of a typeface in points, measuring the height of characters or letters in a given font.