If We Lower Taxes Today but Raise Them in the Future

question 81

Multiple Choice

If we lower taxes today but raise them in the future, and if = 1:

• A) households' wealth rises because they save less.
• B) households will increase today's consumption.
• C) present wealth remains unchanged and consumption does not change.
• D) the government can rely on households to spend more today.
• E) saving today will fall and lifetime consumption rises.

---

Definitions:

Physical Barriers

Obstacles or structures that physically limit access or movement, utilized for security, safety, or to delineate boundaries.

Prejudicial Attitudes

Preconceived opinions or biases toward individuals or groups based on characteristics such as race, gender, religion, or sexuality, often without factual basis.

Community Psychology

This discipline studies the interplay between individuals and their communities, aiming to enhance quality of life through research and intervention.

Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.