The USExperience with Tax Cuts and Tax Increases Since 1975 Suggests

question 71

Multiple Choice

The U.S.experience with tax cuts and tax increases since 1975 suggests that

• A)tax cuts always stimulate consumption spending.
• B)tax changes have a stable and predictable effect on consumption spending.
• C)temporary tax changes are less effective than permanent changes.
• D)tax changes have no effect on consumption spending.

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Definitions:

Proletariat

Refers to the class of wage-earners in a capitalist society whose only significant material value is their labour-power.

Substantive Rationality

Involves assessing actions based on a broader set of values and outcomes, rather than just efficiency or logical reasoning.

Value System

A set of consistent values and measures that guide the behavior and beliefs of an individual or group.

Theoretical Rationality

A concept in philosophy and rationality studies that concerns the systematic and principled organization of knowledge and actions according to logical, methodical, and coherent principles.