If Congress passed a one-time tax cut in order to stimulate the economy in 2010,and tax rate levels returned to their pre-2010 level in 2011,how should this tax cut affect the economy?
A) Households on average would save an amount equal to the tax cut.
B) The tax cut would stimulate spending by households.
C) The tax cut would shift the aggregate demand curve to the right.
D) The tax cut would raise the price level in 2010.

Question

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The Answer of If Congress passed a one-time tax cut in order to stimulate the economy in 2010,and tax rate levels returned to their pre-2010 level in 2011,how should this tax cut affect the economy?
A) Households on average would save an amount equal to the tax cut.
B) The tax cut would stimulate spending by households.
C) The tax cut would shift the aggregate demand curve to the right.
D) The tax cut would raise the price level in 2010.

If Congress Passed a One-Time Tax Cut in Order to Stimulate