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A One-Time Tax Rebate,which Is Not Expected to Be Extended

Question 141

Multiple Choice

A one-time tax rebate,which is not expected to be extended in future years,will


A) have a small positive effect on consumption and aggregate demand.
B) have no effect on consumption and aggregate demand.
C) have a significant positive effect on consumption and aggregate demand,with aggregate demand growing by a multiple of the tax rebate.
D) increase aggregate supply and aggregate demand.

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