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One of the unknown factors with tax cuts is what consumers will do with the extra income thereby made available to them. Such cuts are usually made with the aim of stimulating a flagging economy, but the effects on growth tend to be negligible if consumers, instead 5 of going on a spending spree buying durable goods such as home appliances, decide either to pay off their accumulated debts or hold on to the extra cash in the form of savings. And the fact is that usually when a tax cut is implemented, company investment tends to be running at a low ebb, and only the consumer has the wherewithal to provide 10 a fresh impetus.
1. According to the passage, tax cuts automatically provide more money for
2. According to the passage, the effects of a tax cut are
3. It may be inferred from the passage that a government which reduces taxes usually wants consumers to
4. According to the passage, under what circumstances are tax cuts generally introduced?
5. The passage implies that