If Households View a Tax Cut as Being Temporary, How

Multiple Choice

If households view a tax cut as being temporary, how does the tax cut affect aggregate demand?

A) It has no effect on aggregate demand.
B) It has a stronger effect on aggregate demand than if households view the cut as permanent.
C) It has the same effect on aggregate demand than if households view the cut as permanent.
D) It has a weaker effect on aggregate demand than if households view the cut as permanent.