A One-Time Tax Rebate, Which Is Not Expected to Be

question 23

Multiple Choice

A one-time tax rebate, which is not expected to be extended in future years, will

• A)have a small positive effect on consumption and aggregate demand.
• B)have no effect on consumption and aggregate demand.
• C)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.
• E)have a significant negative effect on aggregate demand as people will expect taxes to rise in the future.

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Definitions:

Refractory Error

Visual impairments caused by the eye's inability to focus light directly on the retina, resulting in blurred vision.

Acute Central Vision

The component of vision that is responsible for sharp, detailed vision straight ahead, primarily used for activities like reading and driving.

Middle Ear

The air-filled central part of the ear behind the eardrum, containing the ossicles that transmit sound vibrations to the inner ear.

Eardrum

A thin membrane that separates the external ear from the middle ear and vibrates in response to sound waves.