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.

Question

Quizplus · Accepted Answer

Option D is not a valid point in debating the merits of increasing government expenditures or cutting taxes during a recession because it presents a factually incorrect statement. There is evidence that tax cuts have led to increases in economic growth in some cases.

Which of the Following Is Not a Valid Point in Debating