Assume the Government Announces an Income Tax Surcharge of 10

Assume the government announces an income tax surcharge of 10% for next year only and the Fed announces that it will keep interest rates constant.What effect do you think this will have on the economy?

A) households will immediately curtail their spending and aggregate demand will decline significantly, causing a recession
B) households will reduce their spending significantly starting next year
C) households will not significantly alter their spending behavior this or next year and the effect on the economy will be minimal
D) households will spend a lot more this year, causing a temporary boom
E) households will save a lot more this year so they won't have to reduce their spending next year