In the 2009 stimulus package, Congress included tax cuts as well as changes in government spending. It makes sense that Congress included increases in government spending because changes in government spending have a larger multiplier than changes in taxes. Which statement gives the MOST likely reason for Congress to include tax cuts? Congress included tax cuts because - The decision lag is shorter than the lag in the effects of spending changes. - The information lag is shorter than the lag in the effects of spending changes. - The recognition lag is longer than the lag in the effects of spending changes. - The implementation lag is shorter than the lag in the effects of spending changes.
In the 2009 stimulus package, Congress included tax cuts as well as changes in government spending. It makes sense that Congress included increases in government spending because changes in government spending have a larger multiplier than changes in taxes. Which statement gives the MOST likely reason for Congress to include tax cuts? Congress included tax cuts because - The decision lag is shorter than the lag in the effects of spending changes. - The information lag is shorter than the lag in the effects of spending changes. - The recognition lag is longer than the lag in the effects of spending changes. - The implementation lag is shorter than the lag in the effects of spending changes.
Chapter21: Fiscal Policy
Section: Chapter Questions
Problem 19SQ
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In the 2009 stimulus package, Congress included tax cuts as well as changes in government spending. It makes sense that Congress included increases in government spending because changes in government spending have a larger multiplier than changes in taxes. Which statement gives the MOST likely reason for Congress to include tax cuts? Congress included tax cuts because
- The decision lag is shorter than the lag in the effects of spending changes.
- The information lag is shorter than the lag in the effects of spending changes.
- The recognition lag is longer than the lag in the effects of spending changes.
- The implementation lag is shorter than the lag in the effects of spending changes.
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