Under dollar-value lifo each layer in ending inventory at lifo cost is calculated by:

a. multiplying the layer at current-year prices by the current year price index.
b. dividing the layer at base-year prices by base-year price index.
c. dividing the layer at current-year prices by the current year price index.
d. first expressing the year at base-year prices and then extending it to current lifo cost by multiplying by the year’s price index

What could explain why a decrease in taxes could lead to a less-than-proportionate increase in output? a. as a result of diminishing returns to current consumption, consumers may choose to spread the extra spending over the long term rather than consuming the proceeds of a tax cut all at once. b. consumers may choose to save much of the tax cut in anticipation of having to pay higher taxes in the future. c. a decrease in taxes will necessitate lower government outlays, thus largely offsetting the higher consumption expenditures of households. d. all of the above. e. a and b only.