A significant example of a temporary tax cut was the one announced in 1992 by President George H. W. 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.
b
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Refer to the scenario above. If Maria's opportunity cost of time increases to $80 per hour, the cost of driving to destination A is:
A) $480. B) $730. C) $800. D) $970.
In the above figure, as Brendan's income rises his consumption bundle moves from point A to point B. This implies that for Brendan, compact discs are ________ good and haircuts are ________ good
A) a normal; an inferior B) a normal; a normal C) an inferior; an inferior D) an inferior; a normal
Patents, copyrights, and trademarks
a. are examples of government-created monopolies. b. are examples of barriers to entry. c. allow their owners to charge higher prices. d. All of the above are correct.
The rate at which a country can trade domestic products for imported products is its:
A) rate of production transformation. B) rate of market substitution. C) terms of trade. D) production possibilities curve.