When Fiscal Policy Is Done Through Tax Cuts Instead of Spending

question 155

Multiple Choice

When fiscal policy is done through tax cuts instead of spending increases:

• A) the resulting fiscal stimulus will be spent by the private sector.
• B) there are likely to be many "bridges to nowhere."
• C) the resulting spending won't pass the cost-benefit test.
• D) the resulting fiscal stimulus will be spent by the government.

---

Definitions:

Fibrous Connective Tissue

A type of connective tissue rich in collagen fibers that provides strength and elasticity to structures.

Hyaline Cartilage

Hyaline cartilage is a type of smooth, translucent cartilage found on many joint surfaces, providing ease of movement and shock absorption.

Zygomatic Bone

One of the bones that form the prominence of the cheek and part of the lateral wall and floor of the orbit.