Furman Says Tax Cuts Don't Pay for Themselves

The video discusses the role of the IMF in global economics, particularly its interactions with the United States. It examines the effects of tax reform on GDP and the national deficit, highlighting the views of various economic models and institutions. The discussion also covers the potential impact of tax cuts on inflation and how the Federal Reserve might respond to these changes.

What role did the United States play in the establishment of the IMF?

• It played a leading role in setting up the IMF.

• It had no involvement in the IMF's creation.

• It opposed the creation of the IMF.

• It only supported the IMF financially.

What is the stance on the idea that tax cuts pay for themselves?

• It is supported by the IMF.

• It is seen as a preposterous notion.

• It is considered a valid economic strategy.

• It is a widely accepted fact.

What is the likely impact of a poorly designed tax plan on economic growth?

• A large negative impact

• A small negative impact

• No impact at all

• A large positive impact

How might the Federal Reserve respond to short-term demand impacts of tax cuts?

• By reducing inflation

• By doing nothing

• By increasing interest rates

• By lowering interest rates

What is the expected short-term effect of tax cuts on inflation?

• A slight increase in inflation

• No change in inflation

• Significant increase in inflation

• A decrease in inflation