Which of the following is TRUE of the difference between a tax cut and a tax rebate?
A) A tax cut only increases the incentive to spend, while a tax rebate only increases the incentive to work.
B) A tax cut only increases the incentive to work, while a tax rebate only increases spending.
C) A tax cut increases the incentive to work and the incentive to spend, while a tax rebate only increases the incentive to spend.
D) A tax cut only increases the incentive to spend, but a tax rebate increases the incentive to work and the incentive to spend.
Correct Answer:
Verified
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