The Cash for Clunkers program was intended to help the US auto industry and help the environment.Which of the following is often cited as a unintended consequence of the program?
A)it removed used cars and recyclable used car parts from the market
B)it helped Toyota surpass GM as the #1 auto maker in the world
C)it helped used car dealers more than new car dealers
D)it led to an acceleration of inflation in the US economy
E)it contributed to an increase in the US trade deficit

Question

Quizplus · Accepted Answer

The program offered monetary incentives to trade in older, less fuel-efficient vehicles for newer, more fuel-efficient models. As a result, many usable vehicles were taken out of circulation and their parts were not available for recycling or reuse, hurting the used car market and increasing the demand for new cars. This unintended consequence can be seen as both an economic and environmental concern.

The Cash for Clunkers Program Was Intended to Help the US