When President Kennedy took office in 1961,the economy was marked by relatively high unemployment.On the advice of Walter Heller,Kennedy agreed to a tax cut to deal with the problem.Viewed in historical perspective,the impact of this tax cut of 1964 was
A) great, stimulating investment, greatly reducing unemployment, and increasing GDP.
B) negligible on income and employment but caused a rapid increase in inflation.
C) moderate, insufficient to convince most economists that the decision was correct.
D) very slight, disappointing those who had favored a government spending package in place of the tax cut.
E) negligible, so slight as to indicate that the decision was a poor one.
Correct Answer:
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