If the Policy Makers Implement a Tax Cut as a Discretionary

Multiple Choice

If the policy makers implement a tax cut as a discretionary fiscal policy to combat a recessionary gap, it may fail to achieve its objective if:

A) the households think of it as a permanent policy.
B) the households think of it as a temporary policy.
C) the households think of it as a 10 year program.
D) the households think of it as a loss of revenue for the government.