If People Expected That a Fiscal Policy in the Form

question 108

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 will tend to be:

• A) Stronger
• B) Weaker
• C) The exact opposite of what was intended
• D) As the multiplier effect would predict

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Definitions:

Budget

An internal financial plan that forecasts expenses and income over a set period of time.

Strategic Financial Plan

A comprehensive evaluation and planning document that outlines an organization's financial goals and the strategies to achieve them.