As a Result of Amendments Made in 1999 by the Texas

question 49

Multiple Choice

As a result of amendments made in 1999 by the Texas Legislature to the Municipal Annexation Act,a city must take all of the following steps in order to annex property into the city limits EXCEPT

• A)develop a three-year annexation plan and not annex the target area in that three-year period.
• B)make and inventory of current services in the area and require negotiations and arbitration regarding services.
• C)provide all services currently provided in its full-purpose boundaries no later than two-and-a-half years after annexation.
• D)conduct at least two public hearings and not reduce service levels in the area from what they were before annexation.
• E)pay the property taxes on the acquired land for the first ten years after annexation.

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Definitions:

Permanent Income Hypothesis

A theory suggesting that people's consumption choices are based on their long-term income expectations rather than their current income.

Induced Consumption

Consumer spending that increases as disposable income rises, and decreases as disposable income falls, unrelated to the level of interest rates.

Wealth Effect

The change in spending that accompanies a change in perceived wealth, typically when home values or investment portfolios increase.

Induced Consumption

Describes consumer spending that increases when income increases and decreases when income decreases, directly related to the level of disposable income.