Solved

In the 2009 Stimulus Package, Congress Included Tax Cuts as Well

Question 305

Multiple Choice

In the 2009 stimulus package, Congress included tax cuts as well as changes in government spending. It makes sense that Congress included increases in government spending because changes in government spending have a larger multiplier than changes in taxes. Which statement gives the MOST likely reason for Congress to include tax cuts? Congress included tax cuts because


A) The information lag is shorter than the lag in the effects of spending changes.
B) The recognition lag is longer than the lag in the effects of spending changes.
C) The decision lag is shorter than the lag in the effects of spending changes.
D) The implementation lag is shorter than the lag in the effects of spending changes.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents