A Decrease in Taxes on the Current Generation Would Have

question 14

Multiple Choice

A decrease in taxes on the current generation would have no effect on consumption or national saving if

• A)individuals face borrowing constraints.
• B)individuals increase their consumption by less than the tax cut.
• C)consumers bequeath all of the tax cut to the next generation.
• D)consumers are not forward looking concerning their future tax burden.

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Definitions:

Biological Difference

Variations among individuals and groups in physical or genetic traits, often used in discussions contrasting with sociocultural influences.

Neocolonialization

A term referring to the form of indirect control that developed countries exert over developing countries, often through economic, social, and cultural pressures, following the end of direct colonial rule.

Color Line

A term originally used to describe the racial segregation in the United States, particularly in reference to African Americans and whites.

Color Line

The term "color line" was coined by W.E.B. Du Bois to refer to the racial segregation and discrimination that divides people into white and non-white groups.