The PIH predicts that temporary tax cuts would

A) be spent on consumer nondurables and services.
B) be offset by an increase in the saving ratio.
C) be offset by a decrease in the saving ratio.
D) be treated the same as permanent tax cuts.

B

Economics

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What are the three limitations on human rationality that behavioral economics emphasizes?

What will be an ideal response?

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The definition of income in the U.S. tax code follows the Haig-Simons definition of income precisely

a. True b. False

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