An example of tax smoothing is provided by evidence of
A) temporary changes in defense expenditures by the government.
B) reductions in tax rates prior to presidential elections.
C) Keynesian tax cuts designed to help the economy recover from a recession.
D) reliance on debt financing rather than taxation during World War II.
D
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A sales tax creates a deadweight loss because
A) there is some paper work opportunity cost of sellers paying the sales tax. B) demand and supply both decrease. C) less is produced and consumed. D) citizens value government goods less than private goods. E) the government spends the tax revenue it collects.
If there is a negative sign in front of unilateral transfers for the United States, then
A) the United States imported more services than it exported. B) the value of U.S. gifts to foreigners exceeded foreign gifts to U.S. residents. C) the United States imported more commercial financial assets than it exported. D) the United States had a negative balance of trade.