If Taxes Rise at a Faster Rate Than Incomes, Consumers

question 242

Multiple Choice

If taxes rise at a faster rate than incomes, consumers will

• A) have less disposable income and try to economize.
• B) feel more confident in the government and therefore spend more money.
• C) use cash for purchases such as a vacation.
• D) recognize that it is the perfect opportunity to buy a car or other expensive products on credit.
• E) react by voting for all incumbent members of Congress.

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Definitions:

Title

Refers to the legal right to own, use, or sell a particular property or asset.

Binder

A written, temporary insurance policy.

Temporary Coverage

A provisional or short-term insurance policy providing limited benefits until a more permanent insurance arrangement is implemented.

Insurance Company

An organization that offers risk management in the form of insurance policies to individuals and businesses, compensating for losses in return for premiums.