Question

Of the​ $840 billion American Recovery and Reinvestment Act stimulus package which was enacted in​ 2009, approximately​ ________ took the form of tax cuts and​ ________ took the form of increases in government expenditures.

Answer 1

Answer:

The correct answers are: one third; two thirds.

Explanation:

The term "tax reduction" may seem a bit confusing, because it is a broad term that covers a wide range of situations that result in a lower amount of the tax collected by the government. The only thing that all tax cuts have in common is that they modify a pre-existing tax law or implement a new one that effectively reduces the amount of taxes you have to pay.

Public spending is that made by the public sector in a given period. It includes all fiscal expenditure, plus all expenses of fiscal and semi-fiscal companies with autonomous administration of the central government. Public spending goes to public consumption goods and capital goods, public investment.