Question

In 2008, many United States families received a tax rebate check from the Internal Revenue Service (IRS). Why were tax rebate checks distributed? A) to stimulate the economy B) to slow down productivity C) to decrease consumer spending D) to increase the federal income tax

Answer 1

The answer is A, to stimulate the economy

Answer 2

The correct answer is A) to stimulate the economy.

In 2008, many United States families received a tax rebate check from the Internal Revenue Service (IRS). Tax rebate checks were distributed to stimulate the economy.

After the severe economic crisis of 2008, where the US federal government had to "rescue" many banks from bankruptcy, the US lived a period of uncertainty that affected the economy of the citizens, the consuming habits, and the creation of jobs. The tax acts of 2008 and 2009 represented temporary tax cuts for many Americans because the government wanted a fast recovery from the Recession.