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.