The Tax Cuts of 2001 and 2003 That Came in the Form

question 65

Multiple Choice

The tax cuts of 2001 and 2003 that came in the form of tax rebate checks are good examples of

• A)fiscal policy.
• B)monetary policy.
• C)the fallacy of composition.
• D)the fallacy that causation and correlation are the same.

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Definitions:

Compound Interest

The interest computed on the principal and any interest earned that has not been paid or withdrawn.

Principal

The original sum of money borrowed in a loan, or the amount of the loan outstanding at any given time, excluding any interest.

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Principal

The original sum of money borrowed in a loan, or the initial amount of investment, excluding any interest or dividends.