If Taxes Rise at a Faster Rate Than Incomes,consumers Will

question 343

Multiple Choice

If taxes rise at a faster rate than incomes,consumers will

• A)have less disposable income and try to economize.
• B)feel more confident in the government and therefore spend more money.
• C)more likely be able to afford to take a vacation.
• D)recognize that it's the perfect opportunity to buy a car.
• E)react by voting for all incumbent members of Congress.

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Definitions:

Investment Opportunity

A potential venture or avenue through which an investor can put money into assets or projects expecting a favorable financial return.

Combined Return On Investment

A measure assessing the total financial return of different investments or the aggregate performance of an entire investment portfolio.

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue that exceeds variable costs, contributing to covering fixed costs and generating profit.

Residual Income

The net income that exceeds the minimum required return on investment or capital; often used as a performance measure in managerial accounting.