An Increase in Expected Future Output While Holding Today's Output

question 25

Multiple Choice

An increase in expected future output while holding today's output constant would

• A)increase today's desired consumption and increase desired national saving.
• B)increase today's desired consumption and decrease desired national saving.
• C)decrease today's desired consumption and increase desired national saving.
• D)decrease today's desired consumption and decrease desired national saving.

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Definitions:

Schedule B

A form attached to the IRS Form 1040 that is used to report interest and dividend income over certain amounts.

Forms 1040A

A simplified version of the IRS form 1040 used for filing individual income taxes, now discontinued and replaced by the redesigned Form 1040.

Interest Income

Earnings received from interest-bearing investments like savings accounts, CDs, and bonds.

Dependent Care Assistance Plans

Employer-provided programs that allow employees to pay for child or dependent care expenses with pre-tax dollars up to a certain limit.