A one-time tax rebate, which is not expected to be extended in future years, will
A) have a moderately 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.
Answer: A
Economics
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Explain how an import quota might be more inefficient than an import tariff that has the same impact on prices.
What will be an ideal response?
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