Money spent on lobbying to eliminate the estate tax is not a cost of the tax system

According to the permanent income hypothesis, the impact of ________

A) a change in permanent income on consumption is greater than the impact resulting from a change in transitory income B) a change in transitory income on consumption is greater than the impact resulting from a change in permanent income C) a change in transitory income is felt primarily through changes in the total tax revenue paid to the federal government D) a change in permanent income on consumption is larger than the impact resulting from a change in future income

A horizontal demand curve for a good could arise because consumers

A) are irrational. B) are not sensitive to price changes. C) view this good as identical to another good. D) have no equivalent substitutes for this good.