An Expected Permanent Tax Increase Is Likely to Increase Current

question 354

True/False

An expected permanent tax increase is likely to increase current spending.

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Definitions:

Opportunity Cost

The benefit foregone by choosing one alternative over another.

Cash Outlay

The actual expenditure of cash or cash equivalent for purchases or services.

Alternative Investments

Financial assets that do not fall into the conventional categories of stocks, bonds, or cash, including commodities, real estate, and hedge funds.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choice.