The Government Implements a Cash for Clunkers Program Whereby Anyone

Multiple Choice

The government implements a cash for clunkers program whereby anyone who owns a car that is at least six years old can trade it in on a new car and the government will pay for half of the cost of the new car.Suppose the majority of the people who take advantage of this program would have bought new cars anyway.This is an example of

A) implementation lag.
B) recognition lag.
C) crowding-out.
D) an automatic stabilizer.
E) impact lag.