Friday
August 22, 2014

Homework Help: economics PLEASE HELP

Posted by tony on Monday, December 20, 2010 at 11:20pm.

According to the permanent hypothesis, households will tend to react to a temporary tax cut by:

A. assuming the new tax level will be permanent.
B. saving most of the additional disposable income.
C. increasing consumption sharply in response to the higher disposable income.
D. temporarily increasing their magical propensity to consume

I'm stuck between B and D. any helpp?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

economics - According to the permanent income hypothesis, households will tend ...
Economics - A monopolist is in long-run equilibrium and earning economic profits...
Macroeconomic - 1. An example of an automatic stabilizer is A. a temporary tax ...
Math - Lear, Inc., has $800,000 in current assets, $350,000 of which are ...
accounting - Can someone please tell me how to set these problems up? I am ...
FInance - Lear, Inc., has $800,000 in current assets, $350,000 of which are ...
economics - Suppose that Congress enacts a lump-sum tax cut of $750 billion. The...
Economics - What describes a tax that is assessed according to benifits received...
economics - How could a tax cut achieve the same result? Would the tax cut have ...
government(taxes) - I am looking for a list of California state taxes. So far ...

Search
Members