The tax cut of 1964
A) represents one of the few failures of modern fiscal policy.
B) was a factor leading to increased consumption expenditures.
C) was passed over the objections of President Kennedy.
D) was enacted to reduce inflationary pressures.
E) induced a decline in investment expenditures.

Question

Quizplus · Accepted Answer

The tax cut of 1964 was a factor leading to increased consumption expenditures as it put more money in the pockets of consumers and businesses, leading to an increase in spending.

The Tax Cut of 1964