If People Expected That a fiScal Policy in the Form

question 95

Multiple Choice

If people expected that a fiscal policy in the form of a tax cut was temporary, then this policy's effect on the economy would tend to be

• A) stronger.
• B) weaker.
• C) the exact opposite of what was intended.
• D) as the multiplier effect would predict.

---

Definitions:

Individual Effort

The personal exertion or endeavor by an individual to accomplish a task or achieve a goal.

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales revenue; calculated as sales divided by average invested assets.

Group Pay Systems

Compensation structures where pay is determined based on the performance of a group or team, rather than individual achievement.

Dysfunctional Competition

A harmful form of rivalry among businesses that may involve unethical practices, leading to reduced efficiency and harm to consumers or the industry.