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

---

Definitions:

Canadian Mental Health Association

A non-profit organization that promotes mental health awareness and supports the recovery of people experiencing mental illness.

Mental Health Disorders

A wide range of conditions that affect mood, thinking, and behavior, requiring clinical diagnosis and management.

Incidence

The frequency or rate at which new cases of a condition, disease, or event occur in a specific population over a certain period.

Boomerang Kids

Young adults who move back into their parents’ homes after an initial period of independent living.