The tax rebate of 2008 had a relatively small impact because taxpayers primarily used the rebate to:
A) purchase their annual Christmas gifts.
B) take vacations.
C) reduce their debts.
D) increase their savings.

Question

Quizplus · Accepted Answer

The tax rebate of 2008 was intended to stimulate the economy by encouraging consumers to spend money. However, studies showed that a large proportion of taxpayers used the rebate to pay down their debts, rather than making new purchases. Therefore, choice C, reducing their debts, is the best answer as it reflects the primary way in which taxpayers used the tax rebate in 2008.

The Tax Rebate of 2008 Had a Relatively Small Impact