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A Tax Rebate

Question 61

Multiple Choice

A tax rebate


A) Has the same impact as a decrease in marginal tax rates.
B) Increases the incentive to work and invest.
C) Does not affect aggregate supply.
D) Does not affect aggregate demanD.Since tax rebates are just a one-time windfall to consumers and do not actually change marginal tax rates,their use does not lead to an increase in AS.

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