Which of the Following Best Explains Why the Federal Tax

question 135

Multiple Choice

Which of the following best explains why the federal tax rebates in the 2000s had almost no effects on aggregate demand?

• A) According to the permanent income hypothesis, those one-time tax rebates did not affect consumption because they did not change taxpayers' permanent income.
• B) According to the permanent income hypothesis, those one-time tax rebates did not affect consumption because taxpayers did not believe the rebates would occur.
• C) According to Ricardian equivalence theorem, those tax rebates did not affect aggregate demand because they were accompanied by more government spending.
• D) According to Ricardian equivalence theorem, those tax rebates did not affect aggregate demand because there were no direct expenditure offsets.

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The process by which an organ, typically the penis, becomes enlarged and rigid, often as a result of sexual arousal.

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The act of physical sexual contact between individuals that involves the genitalia of at least one person.

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A vaccine that protects against the human papillomavirus, which can lead to cervical cancer and other diseases.