The Cash for Clunkers program was intended to help the US auto industry and help the environment.Which of the following is often cited as a unintended consequence of the program?
A)it contributed to an increase in the US trade deficit
B)it helped Toyota surpass GM as the #1 auto maker in the world
C)it helped the Japanese auto industry more than the US industry
D)it helped used car dealers more than new car dealers
E)it led to an acceleration of inflation in the USeconomy

Question

Quizplus · Accepted Answer

The unintended consequence often cited for the Cash for Clunkers program is that it helped the Japanese auto industry more than the US industry. Many of the clunkers traded in were American-made cars, but the most popular new car purchased was the Toyota Corolla, which is made in Japan. This led to criticism that the program was essentially subsidizing the Japanese auto industry at the expense of American taxpayers.

The Cash for Clunkers Program Was Intended to Help the US