Across-The-Board Tax Cuts May Not Have the Desired Result Because

question 3

Multiple Choice

Across-the-board tax cuts may not have the desired result because

• A) people do not spend any of their additional income.
• B) tax cuts are perceived not to increase purchasing power.
• C) people with different incomes spend differing amounts of additional income.
• D) tax cuts have an immediate effect on saving.

---

Definitions:

Medicinal

Referring to substances or practices used in the treatment of illness or to enhance physical or mental health.

Wheat

A cereal grain, originally from the Levant region of the Near East and Ethiopian Highlands, that is a global staple food.

Corn

A cereal plant (Zea mays) that produces large kernels on a cob; also used to refer to the kernels themselves, which are a staple food in many parts of the world.

Natural Ecosystems

Natural ecosystems are biological communities that interact with their physical environment, functioning through naturally occurring processes without significant human intervention.