Consider two policies: a tax cut that will last for only one year and a tax cut that is expected to be permanent. True or False: A tax cut that will last for only one year will stimulate greater spending by consumers than a tax cut that is expected to be permanent. True False

False

Explanation:

A short term tax cut will not affect spending as much as a permanent tax cut.

With a short term tax cut, people will know that they will have to go back to paying higher taxes in a short while and so will spend less so that they may be able to afford the higher taxes when they are reimplemented.

If a tax cut is long term however, consumers will spend more because they do not have to worry about having to afford to pay higher taxes after the year expires.

answer; common market;

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20