Typically,consumers Respond to an Increase in (Expected)future Income by ________

question 11

Multiple Choice

Typically,consumers respond to an increase in (expected) future income by ________.

• A)shifting the budget constraint to the left
• B)increasing both current and future consumption
• C)saving more to increase future wealth
• D)waiting until the income is received before changing their consumption behavior

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Definitions:

Unit Cost

Unit cost is the total expenditure incurred to produce, store, and sell one unit of a product or service, including both fixed and variable costs.

U.S. Tax System

The structured collection of taxes imposed by the federal, state, and local governments in the United States, including income, sales, and property taxes.

Taxation Basis

Refers to the underlying system or set of rules used to determine how much tax an individual or entity owes.

Saving

The process of setting aside a portion of current income for future use, typically in a bank account or other investment vehicle.