According to the traditional viewpoint of government debt, a tax cut without a cut in government spending:

Question

Quizplus · Accepted Answer

A tax cut without a cut in government spending stimulates consumer spending in the short run because people have more disposable income. However, it reduces national saving because the government needs to borrow more to finance its unchanged level of spending, leading to a decrease in the overall savings available in the economy.

According to the Traditional Viewpoint of Government Debt, a Tax