If Households View a Tax Cut as Temporary, Then the Tax

question 175

Multiple Choice

If households view a tax cut as temporary, then the tax cut

• A)has no affect on aggregate demand.
• B)has more of an affect on aggregate demand than if households view it as permanent.
• C)has the same affect as when households view the cut as permanent.
• D)has less of an affect on aggregate demand than if households view it as permanent.

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