Suppose That an Investment Tax Credit That Would Come on Line

Suppose that an investment tax credit that would come on line in the next tax year were enacted to try to avoid an anticipated recession. The result of this type of delayed policy would be

A) a slowing of the downturn toward recession as investment rose in anticipation of the credit.
B) an acceleration of the downturn toward recession as investment initially fell in anticipation of putting off planned capital projects until they would be eligible for the tax credit.
C) an immediate increase in the interest rate that would cancel the stimulus and guarantee the recession.
D) no effect at all until the credit were applicable next year.
E) none of the above.