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

question 270

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.

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Definitions:

Common Identity

A sense of shared identity among members of a group, which can influence social cohesion and collective behavior.

Unconscious Patronization

A subtle form of discrimination in which people with a bias unknowingly treat marginalized or minority individuals with apparent kindness that reflects a sense of superiority.

Just-World Phenomenon

The cognitive bias to believe that the world is inherently fair, leading to the assumption that individuals get what they deserve.

Unemployed People

Individuals who are currently not working but are available for and seeking employment.