In the Summer of 2001, Tax Rebate Checks of $300

Multiple Choice

In the summer of 2001, tax rebate checks of $300 per single taxpayer and $600 for married couples were distributed to 92 million people in the U.S. Economic researchers found that over a nine-month period spending increased to about 40% of the rebate. These findings support

A) the permanent income hypothesis.
B) the current income hypothesis.
C) the transitory income hypothesis.
D) the consumption function.