What is the traditional belief about the effect of government cutting taxes and running a budget deficit?
A.It promotes consumers spend more✓ Correct
B.It promotes foreign investors to opt out from economy rapidly
C.It promotes consumers spend less
D.It shows government irresponsive behaviour
Explanation
Traditionally, tax cuts leave more money in consumers' hands and a budget deficit means the government is spending more, both of which stimulate consumer spending.
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