Multiple Choice
Which of the following is not a valid point in debating the merits of increasing government expenditures or cutting taxes during a recession?
A) A cut in the marginal tax rate increases the incentives to find a job and work longer hours.
B) Consumers will save a portion of a tax cut.
C) The government may use the increase in expenditures on projects with little value,particularly if it wishes to respond quickly.
D) There is no evidence that tax cuts have been followed by increases in economic growth.
Correct Answer:

Verified
Correct Answer:
Verified
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