Author Question: Any increase in the present value of taxes for the consumer implies A) an increase in lifetime ... (Read 80 times)

kwoodring · **on:** Jun 30, 2018

Any increase in the present value of taxes for the consumer implies

A) an increase in lifetime wealth and an increase in current labor supply.
B) an increase in lifetime wealth and a decrease in current labor supply.
C) a decrease in lifetime wealth and an increase in current labor supply.
D) a decrease in lifetime wealth and a decrease in current labor supply.

Question 2

Both Keynesians and supply-siders believe that tax cuts

a. will increase income by increasing aggregate supply.
b. will increase income by increasing aggregate demand.
c. will increase income but for different reasons.
d. will increase income in the Keynesian model but decrease income in the Supply-side model.