(Last Word) The Romer and Romer paper, "The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks," identiﬁed the major motivations for most signiﬁcant
Legislated tax changes to be the following, except
A) adjustments made to match changes in government spending.
B) offsetting the monetary policy pursued by the Federal Reserve.
C) addressing an inherited budget deﬁcit.
D) promoting long-run economic growth.

Question

Quizplus · Accepted Answer

The Romer and Romer paper identified the major motivations for significant legislated tax changes to be adjustments made to match changes in government spending, addressing an inherited budget deficit and promoting long-run economic growth. However, offsetting monetary policy pursued by the Federal Reserve was not identified as one of the major motivations.

(Last Word) the Romer and Romer Paper, "The Macroeconomic Effects