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The Efficacy of Tax Incentives as an Instrument of Activist

Question 73

Multiple Choice

The efficacy of tax incentives as an instrument of activist fiscal policy


A) has been proven to be very substantial in the view of most economists.
B) is not plagued by a substantial lag between the passage of tax legislation and the resulting investment spending.
C) is subject to debate but still is limited by the "legislative lag."
D) has been proven to be so limited that it is no longer considered to be a serious option by most economists.

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