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:

Organism

A living thing that has the ability to act or function independently.

Wharton's Jelly

A gelatinous substance within the umbilical cord that provides cushioning and support to the blood vessels.

Substance

The fundamental physical matter or material that makes up an object or individual.