The Reason for the Different in Tax Policy and Spending

question 121

Multiple Choice

The reason for the different in tax policy and spending policy by the government is due to:

• A) people not responding to tax policy as much as spending policy.
• B) the fact that when the government engages in spending policy, they do it more aggressively.
• C) firms drastically responding to tax changes that are implemented.
• D) the difference in initial spending that results from engaging in tax policy.

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Definitions:

Express Repudiation

The clear and unequivocal refusal to perform one's obligations under a contract.

Anticipatory Breach

Occurs when one party to a contract indicates, either through their actions or words, that they will not fulfill their contractual obligations, allowing the other party to seek remedies before the breach actually occurs.

Performance Date

The specified day by which a contractual agreement, task, or duty must be completed.

Liquidated Damages Clause

A contract provision that specifies a predetermined amount of money one party will pay to the other if they breach certain clauses of the contract.