Any Increase in the Present Value of Taxes for the Consumer

question 25

Multiple Choice

Any increase in the present value of taxes for the consumer implies

• A) an increase in lifetime wealth and an increase in current labor supply.
• B) an increase in lifetime wealth and a decrease in current labor supply.
• C) a decrease in lifetime wealth and an increase in current labor supply.
• D) a decrease in lifetime wealth and a decrease in current labor supply.

---

Definitions:

UCC

The Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.

Secured Interests

A legal claim or right a lender has on the borrower's collateral in case they default on the loan.

Priority in Time

A legal principle that grants precedence to rights or claims established earlier in time over those established later.

Securitization

The process of converting assets, usually illiquid ones, into marketable securities, thereby enhancing liquidity and often reducing risk.