[Solved] If Parliament Passed a One-Time Tax Cut in Order to Stimulate

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If Parliament passed a one-time tax cut in order to stimulate the economy in 2015, and tax rate levels returned to their pre-2015 level in 2016, how should this tax cut affect the economy?


A)Households on average would save an amount greater than the tax cut.
B)The tax cut would stimulate spending by households.
C)The tax cut would shift the aggregate demand curve to the right.
D)The tax cut would raise the price level in 2015.
E)The tax cut would reduce investment by firms in 2015.

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