What Is the Main Argument Which Explains Why an Increased

question 18

Multiple Choice

What is the main argument which explains why an increased public deficit financed tax cut may not result in increased consumption?

• A)People will increase savings to "finance" debt repayment by future generations.
• B)People will increase consumption to "finance" debt repayment by future generations.
• C)Savings is determined by uncertain events,the timing of future illnesses and death.
• D)Savings is determined by certain events,the timing of future illnesses and death.

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Definitions:

Taxable Income

The amount of income used to calculate how much the tax will be for an individual or a corporation, after all deductions and exemptions.

Tax Liability

The total amount of tax owed to the IRS by an individual or business for a given tax year.

Income Tax Formula

The calculation used to determine the amount of income tax that an individual or entity owes to the government.

Taxpayers

Persons or organizations required to remit taxes to a government at the federal, state, or local level.