If Congress passed a one-time tax cut in order to stimulate the economy in 2014, and tax rate levels returned to their pre-2014 level in 2015, how should this tax cut affect the economy?
A) The tax cut would increase consumption spending more than would a permanent tax cut.
B) The tax cut would lower the price level in 2014.
C) The tax cut would increase consumption spending by the same amount as would a permanent tax cut.
D) The tax cut would increase consumption spending less than would a permanent tax cut.
D
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Refer to Table 6-6. Based on the data in the table, between a price of $9.99 and $14.99, the demand for books is
A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic.
Refer to Figure 10.3. What quantity will the monopsonist purchase to maximize profit?
A) Q1 B) Q2 C) Q3 D) Q4 E) none of the above
Innovation tends to be an extremely competitive activity that allows few opportunities for firms to share information with one another
a. True b. False Indicate whether the statement is true or false
Macroeconomics primarily examines: a. the behavior of firms
b. how prices are determined in markets. c. broad issues such as inflation. d. the cost-minimizing conditions for business firms.