Multiple Choice
The most extreme example of a temporary tax cut was the one announced in 1992 by President Bush.The effect of that tax cut on consumer spending and aggregate demand was
A) zero.
B) likely smaller than if the cut had been permanent.
C) likely about the same as if the cut had been permanent.
D) likely larger than if the cut had been permanent.
Correct Answer:
Verified
Correct Answer:
Verified
Q15: When the interest rate decreases, the opportunity
Q57: During recessions,automatic stabilizers tend to make the
Q95: Monetary policy<br>A)can be implemented quickly and most
Q99: Aggregate demand shifts to the left and
Q102: During expansions,automatic stabilizers make government expenditures<br>A)and taxes
Q117: Suppose there were a large increase in
Q123: If the interest rate is above the
Q133: If the interest rate is below the
Q149: In the short run,<br>A) the price level
Q191: In recent years,the Fed has chosen to