The tax cut of 2009 had little significant effect on consumer spending because it
A)was not large enough.
B)was perceived as temporary.
C)came too early in the year.
D)was subtracted from 2008 taxes due.

Question

Quizplus · Accepted Answer

The tax cut of 2009 was perceived as temporary, as it was meant to be a one-time stimulus measure rather than a long-term policy change. This perception may have discouraged people from significantly increasing their spending, as they may have felt that the extra money was not guaranteed to be available in future years.

The Tax Cut of 2009 Had Little Significant Effect on Consumer