A Tax Rebate,which Is Expected to Be Offered in This

question 101

Multiple Choice

A tax rebate,which is expected to be offered in this and all future years,will

• A)have a small positive effect on consumption and aggregate demand.
• B)have no effect on consumption and aggregate demand.
• C)will have a significant positive effect on consumption and aggregate demand, with aggregate demand growing by a multiple of the tax rebate.
• D)increase aggregate supply and aggregate demand.

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