_____ puts more spending in the hands of the private sector,while _____ put more spending in the hands of the government.
A) A tax cut;increased government expenditures
B) A tax cut;tax rebates
C) Increased government spending;tax cuts
D) A tax increase;tax rebates

Question

Quizplus · Accepted Answer

A tax cut would put more money in the hands of individuals and businesses, allowing them to spend and invest the money in the private sector. Increased government expenditures, on the other hand, would put more money in the hands of the government to spend on public programs and services. Tax rebates, which are a form of government expenditure, would also put more money in the hands of individuals but still involve government spending. A tax increase would reduce the amount of money available for private sector spending or government spending, depending on how the revenue was used, but would not necessarily put more money in the hands of the government.

_____ Puts More Spending in the Hands of the Private