The Romer and Romer 2010 paper in the American Economic Review identified the major motivations for most significant legislated tax changes to be the following, except:
A) Adjustments made to match changes in government spending
B) Offsetting the monetary policy pursued by the Federal Reserve
C) Addressing an inherited budget deficit
D) Promoting long-run economic growth

Question

Quizplus · Accepted Answer

The Romer and Romer paper identified the main motivations for tax changes to be adjustments made to match changes in government spending, addressing an inherited budget deficit, and promoting long-run economic growth. Offset monetary policy pursued by the Federal Reserve was not identified as a major motivation.

The Romer and Romer 2010 Paper in the American Economic