Which of the following is an argument for tax cuts rather than government spending as a way to promote recovery from a recession?
A) Tax cuts are better suited to direct resources into projects that consumers value more highly than the resources required for their production.
B) 100 percent of a tax cut will stimulate aggregate demand, but this will not be the case for an increase in government expenditures.
C) Tax cuts will encourage rent seeking; increases in government spending will not.
D) Tax cuts will change the structure of aggregate demand more than increases in government spending.
Correct Answer:
Verified
Q92: Which is more likely to stimulate aggregate
Q93: Within the framework of the AD-AS model,
Q94: Since the mid-1980s, the debt-to-income ratio of
Q95: Fiscal stimulus is most likely to direct
Q96: When government spending flows to areas where
Q98: Which of the following is most likely
Q99: During 2001-2012, the federal budget deficit
A) expanded
Q100: Keynesian economists argue that during a recession
A)
Q101: Which of the following is true of
Q102: Which of the following is true of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents