Temporary tax cuts tend to stimulate consumer spending at the same rate as permanent tax cuts.

Question

Quizplus · Accepted Answer

Temporary tax cuts may not provide the same level of certainty and predictability for consumers as permanent tax cuts, which could limit their willingness to increase spending. Additionally, consumers may be more likely to save any extra money from a temporary tax cut rather than spend it, as they may not view the extra funds as a consistent source of income.

Temporary Tax Cuts Tend to Stimulate Consumer Spending at the Same