Why Did the Tax Rebate of $78 Billion in 2008

question 242

Multiple Choice

Why did the tax rebate of $78 billion in 2008 have few net stimulus benefits?

• A) Consumers overspent the rebate and fell into debt.
• B) Consumers used much of the rebate to pay off existing debt.
• C) Consumers spent the money on frivolous items that did not have a multiplier effect.
• D) Consumers decided to save all of their rebate money.

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Definitions:

Initiating Structure

A leadership behavior that emphasizes the organization of work, work roles, and work activities, focusing on task-oriented goals.

Consideration

In leadership, it refers to a style that emphasizes concern for the needs, feelings, and well-being of followers, often contrasting with task-oriented styles.

Trust Building

The process of developing confidence and reliability in relationships, crucial for successful teamwork and leadership.

Relationship Behaviors

Actions undertaken by individuals to establish, maintain, and enhance interpersonal relationships.