Economist Robert Barro drew attention to how people ________ to argue that tax cuts ________ saving and thus are ________ as a stabilization tool.

Question

Quizplus · Accepted Answer

Barro argued that people tend to save more when they receive tax cuts, but instead of spending that money, they tend to leave it as bequests to their children. This means that tax cuts do not stimulate consumption and thus are ineffective as a stabilization tool. Choice B correctly summarizes Barro's argument.

Economist Robert Barro Drew Attention to How People ________ to Argue