According to the permanent income hypothesis, taxpayers react to a one-time tax rebate
A) by spending all of the tax rebate.
B) by spending more than the amount of the tax rebate.
C) by saving half of the tax rebate and spending the rest.
D) by saving all of the tax rebate.
D
Economics
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The EITC creates an incentive to understate income for workers whose earnings are less than the wage ceiling for maximum credit
Indicate whether the statement is true or false
Economics
The standard definition of "recession" is
A) a period of a positive frictional unemployment rate. B) two consecutive quarters of falling Real GDP. C) the lowest point in a business cycle. D) a period of negative inflation.
Economics