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Assume that the federal government's debt is at record high levels. In order to win an election, the government decides to cut taxes to stimulate
Assume that the federal government's debt is at record high levels. In order to win an election, the government decides to cut taxes to stimulate the economy. Why might consumers not respond to the reduction in taxes? They believe that lower taxes are unsustainable due to high debt levels. Tax levels do not have an effect on consumer spending. Voters are not generally concerned about the economy. All of the above
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