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.

---

Definitions:

Basal Ganglia

A group of structures in the brain involved in coordinating movement and influencing various aspects of behavior.

ADHD-I

Attention Deficit Hyperactivity Disorder, Inattentive Type; a subtype of ADHD characterized mainly by problems with attention and concentration, without the hyperactivity often associated with other forms.

ADHD-H

A subtype of Attention-Deficit/Hyperactivity Disorder predominantly characterized by hyperactivity and impulsivity.

ADHD-HI

Attention Deficit Hyperactivity Disorder, Hyperactive-Impulsive Type, characterized by excessive restlessness, impulsive behavior, and difficulty with maintaining attention.