Which of the Following Is Not a Valid Point in Debating

question 2

Multiple Choice

Which of the following is not a valid point in debating the merits of increasing government expenditures or cutting taxes during a recession?

• A)A cut in the marginal tax rate increases the incentives to find a job and work longer hours.
• B)Consumers will save a portion of a tax cut.
• C)The government may use the increase in expenditures on projects with little value,particularly if it wishes to respond quickly.
• D)There is no evidence that tax cuts have been followed by increases in economic growth.