Using sharp increases or decreases in taxes rather than deficits is a better way to prevent distortions in an economy.

Name: Using sharp increases or decreases in taxes rather than deficits is a better way to prevent distortions in an economy.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Using sharp increases or decreases in taxes can cause significant economic distortions by affecting consumer spending and investment decisions. Gradual adjustments and a balanced approach to fiscal policy are generally preferred to avoid sudden economic shocks.

Using Sharp Increases or Decreases in Taxes Rather Than Deficits