A tax rebate, which is expected to be offered in this and all future years, will
A) have a significant positive effect on consumption and aggregate demand, with aggregate demand growing by a multiple of the tax rebate.
B) increase aggregate supply and aggregate demand.
C) have a small positive effect on consumption and aggregate demand.
D) have no effect on consumption and aggregate demand.
A
Economics
You might also like to view...
The multiplier effect applies to any
A) change in any source of spending other than consumption and investment. B) change in autonomous consumption but not autonomous investment. C) change in both autonomous consumption and autonomous investment. D) change in autonomous investment but not autonomous consumption.
Economics
Explain the difference between poverty and scarcity
Economics