Statement 1: A tax cut will have the same impact on the recessionary gap as an increase in G only if people spend the entire tax cut statement 2:The paradox of thrift is more relevant today, when savings are so low, than it was back in the 1950s and 1960s.

Statement 1: A tax cut will have the same impact on the recessionary gap as an increase in G only if people spend the entire tax cut statement 2:The paradox of thrift is more relevant today, when savings are so low, than it was back in the 1950s and 1960s.

Naim 21:41

Statement 1: A tax cut will have the same impact on the recessionary gap as an increase in G only if people spend the entire tax cut
statement 2:The paradox of thrift is more relevant today, when savings are so low, than it was back in the 1950s and 1960s.



a. Statement 1 is true and statement 2 is false
b. Statement 2 is true and statement 1 is false
c. both statements are true
d. both statements are false








Answer: A


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