When consumers spend all of their tax rebate checks, what will take place in the economy?

Name: When consumers spend all of their tax rebate checks, what will take place in the economy?
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Question

Quizplus · Accepted Answer

When consumers spend all of their tax rebate checks, it will increase their disposable income, leading to an increase in consumption. This increase in consumption will increase aggregate demand, shifting it up and right. As a result, there will be an increase in economic activity and GDP.

When Consumers Spend All of Their Tax Rebate Checks, What