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

question 56

Multiple Choice

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

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

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Definitions:

POS

Point Of Sale; a system used at retail locations to manage sales, inventory, and customer transactions.

Identification Card

A personal document issued by a competent authority that serves to identify the person named on it, typically including personal data and often a photo.

ATM Card

A plastic card issued by a bank allowing the cardholder to withdraw cash from automated teller machines.

Liability

A legal obligation or responsibility to another party, often resulting in the requirement to pay damages or compensation.