In Response to a Tax Cut, the Consumption of a Consumer

question 9

Multiple Choice

In response to a tax cut, the consumption of a consumer who is borrowing-constrained ______, whereas the consumption of a forward-looking, unconstrained consumer acting in accord with Ricardian equivalence ______.

• A) increases; increases
• B) increases; remains unchanged
• C) remains unchanged; remains unchanged
• D) remains unchanged; increases

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Definitions:

Robbing

A criminal act of taking someone's property unlawfully by force or threat of force.

Criminal Cases

Criminal cases are legal proceedings brought by the state or federal government against an individual or organization accused of violating criminal law.

Public Prosecutor

A legal official who represents the state or the public in criminal prosecutions, also known as a district attorney or prosecutor.

Trial Lawyer

An attorney specialized in arguing cases in front of a judge and jury.