A Significant Example of a Temporary Tax Cut Was the One

question 31

Multiple Choice

A significant example of a temporary tax cut was the one announced in 1992 by President George H. W. Bush. The effect of that tax cut on consumer spending and aggregate demand was

• A)zero.
• B)likely smaller than if the cut had been permanent.
• C)likely about the same as if the cut had been permanent.
• D)likely larger than if the cut had been permanent.

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Definitions:

Decision Making

The cognitive process of selecting a course of action among multiple alternatives, often resulting in a final choice or judgment.

Bounded Rationality

A concept suggesting that decision-making is limited by the information available, cognitive limitations of minds, and finite time to make decisions.

Product Development

The entire process of bringing a new product or service to the market.

Debug

The process of identifying, analyzing, and removing errors or bugs from computer software or hardware.