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The President of the Hypothetical Country of Accordia Implements a Temporary

Question 37

Multiple Choice

The president of the hypothetical country of Accordia implements a temporary two-year tax cut on income taxes.According to the permanent-income hypothesis,these tax cuts would represent ________ income and would have ________ on consumption.


A) permanent; a significant impact
B) permanent; very little impact
C) transitory; a significant impact
D) transitory; very little impact

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