The main reason that the 1975, 2008, and 2009 tax cuts did not have a large effect on GDP is that they were
A)temporary surcharges rather than permanent surcharges.
B)permanent surcharges rather than temporary surcharges.
C)temporary tax cuts rather than a permanent tax cuts.
D)permanent tax cuts rather than a temporary tax cuts.

Question

Quizplus · Accepted Answer

The main reason the tax cuts did not have a large effect on GDP is that they were temporary, meaning they were not permanent changes to the tax code. Temporary tax cuts are less likely to stimulate long-term economic growth as individuals and businesses may save or invest less of the extra income since they know the tax cut will expire after a certain period.

The Main Reason That the 1975, 2008, and 2009 Tax