Which of the Following Purchases Is Most Likely to Rise

question 84

Multiple Choice

Which of the following purchases is most likely to rise as the result of a temporary tax cut,according to the permanent-income hypothesis?

• A)television sets and other consumer durables
• B)steak dinners and other consumer non-durables
• C)trips to the Virgin Islands and other vacation destinations
• D)theater tickets and other entertainment expenditures

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Definitions:

Reticular Formation

A complex network of nerve pathways in the central nervous system that plays a key role in controlling arousal and consciousness.

Central Nervous System

The complex of nerve tissues that controls the activities of the body, comprising the brain and spinal cord.

Spinal Cord

The cylindrical bundle of nerve fibers and associated tissue that is connected to the brain at the brainstem and extends down the back, transmitting neural signals between the brain and the body.

Brain

The complex organ located in the skull that is responsible for cognitive functions, sensory processing, emotion regulation, and controlling voluntary movements.