If Congress Passed a One-Time Tax Cut in Order to Stimulate

question 219

Multiple Choice

If Congress passed a one-time tax cut in order to stimulate the economy in 2014,and tax rate levels returned to their pre-2014 level in 2015,how should this tax cut affect the economy?

• A)The tax cut would increase consumption spending less than would a permanent tax cut.
• B)The tax cut would increase consumption spending more than would a permanent tax cut.
• C)The tax cut would increase consumption spending by the same amount as would a permanent tax cut.
• D)The tax cut would lower the price level in 2014.

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A potentially life-threatening virus that causes hepatitis B, an infection that affects the liver.

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