The Strong Tax Revolt Against Extensive Government Programs and Spending

question 39

Multiple Choice

The strong tax revolt against extensive government programs and spending was spurred by the passage of Proposition 13 that severely limited property taxes in

• A) Arizona.
• B) Wisconsin.
• C) New Hampshire.
• D) California.
• E) Oregon.

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Definitions:

APS

The Average Propensity to Save, which is the proportion of income that households save rather than consume.

MPC

The marginal propensity to consume, which is the portion of additional income that a consumer spends on goods and services.

Consumption

The total value of goods and services consumed by households and businesses.

APC

Average Propensity to Consume, the fraction of total disposable income that households plan to spend on consumption as opposed to saving.