Other things equal,which will result in a larger stimulus,a temporary investment tax rebate or a permanent investment tax rebate?
A) a temporary investment tax rebate
B) a permanent investment tax rebate
C) They will both produce the same amount of stimulus.
D) Neither will provide any stimulus.

Question

Quizplus · Accepted Answer

A temporary investment tax rebate will result in a larger stimulus compared to a permanent investment tax rebate. This is because individuals and businesses are more likely to change their behavior in response to a temporary rebate that is available for a limited time, compared to a permanent rebate that will always be available. Temporary rebates incentivize people to take action quickly, leading to a larger and more immediate economic impact.

Other Things Equal,which Will Result in a Larger Stimulus,a Temporary