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

Question 162
Multiple Choice
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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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