The PIH Predicts That Temporary Tax Cuts Would

question 77

Multiple Choice

The PIH predicts that temporary tax cuts would

• A)be spent on consumer nondurables and services.
• B)be offset by an increase in the saving ratio.
• C)be offset by a decrease in the saving ratio.
• D)be treated the same as permanent tax cuts.

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Definitions:

Politically Motivated

Actions or decisions driven by political reasons, aims, or influences rather than by personal or ethical considerations.

Jacob Lawrence

An African-American painter known for his portrayal of African-American life and history through his series of narrative paintings.

The Migration of the Negro

A series of paintings by artist Jacob Lawrence depicting the mass movement of African Americans from the rural South to the urban North in the early 20th century.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.