Consider Consumption in Two Periods

question 25

Multiple Choice

Consider consumption in two periods,
And
) Consumption smoothing implies:

• A)if taxes fall today,they will rise tomorrow.
• B)people would consume .
• C)people would rather consume the average of and .
• D)transitory income is zero.
• E)people always know their future income and adjust consumption accordingly.

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Definitions:

Unconditioned Stimulus

A stimulus that unconditionally, naturally, and automatically triggers a response without any learning process.

Observational Learning

Gaining understanding by observing the conduct of others and the consequences of that conduct.

Violent Television

TV programming that contains scenes of physical aggression or harm intended to represent real-life conflicts, often criticized for potentially encouraging violent behavior in viewers.

Aggressively

In a manner that is forceful, assertive, or with intent to dominate or harm.