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In 1992 the rst bush administration was worried about a

In 1992, the rst Bush administration was worried about a lingering recession. The administration announced that households would receive a reduction in their taxes for the year 1992. However, this was not accom- panied by a reduction in tax rates, and the taxes would have to be repaid when households led their taxes in April 1993. Explain the impact of such a policy.

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