Which of the following is more likely to be effective in increasing the growth rate of real GDP?
A)temporary cuts in income taxes
B)permanent cuts in business taxes
C)a one-time personal income tax rebate
D)All cuts in taxes are equally likely to increase the growth rate of real GDP.

Question

Quizplus · Accepted Answer

Permanent cuts in business taxes are more likely to stimulate long-term investment and business growth, leading to sustained economic growth and increased real GDP. Temporary cuts in income taxes or one-time personal income tax rebates may provide a short-term boost to consumer spending, but they are less likely to have a lasting impact on economic growth.

Which of the Following Is More Likely to Be Effective