Which of the Following Statements Is True

question 110

Multiple Choice

Which of the following statements is true?

• A) If households expect higher taxes in the future, they will increase their current saving rate.
• B) If households expect higher taxes in the future, they will decrease their current saving rate.
• C) The saving rate of households is dependent only on current consumption expenditure.
• D) The saving rate of households is dependent only on planned future consumption expenditure.

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Definitions:

Apartheid

A policy or system of segregation or discrimination on grounds of race, implemented in South Africa from 1948 until the early 1990s, which severely restricted the rights of the non-white population.

Constructive Engagement

A diplomatic policy of engaging with a nation in a positive manner to encourage changes in policies or behavior, often used in contexts of human rights or economic reform.

Economic Sanctions

Financial and trade penalties applied by one or more country against a targeted country, group, or individual to achieve foreign policy objectives.

Berlin Wall

A concrete barrier that physically and ideologically divided Berlin from 1961 to 1989, symbolizing the Cold War division between East and West.