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With a Temporary Income Tax Surcharge,according to the ________,Household Consumption

Question 73

Multiple Choice

With a temporary income tax surcharge,according to the ________,household consumption should ________.


A) PIH;fall as disposable income falls
B) PIH;rise since the decrease is disposable income is temporary
C) LCH;fall since disposable income over the lifecycle falls
D) None of the above is correct since a temporary change affects neither permanent income or relative lifecycle earnings.

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