Which of the following is not a valid point in debating the merits of increasing

ID: 1197291 • Letter: W

Question

Which of the following is not a valid point in debating the merits of increasing government expenditures or cutting taxes during a recession?

A. There is no evidence that tax cuts have been followed by increases in economic growth.

B. A cut in the marginal tax rate increases the incentives to find a job and work longer hours.

C. The government may use the increase in expenditures on projects with little value, particularly if it wishes to respond quickly.

D. Consumers will save a portion of a tax cut.

B. A cut in the marginal tax rate increases the incentives to find a job and work longer hours.

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