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 affect on aggregate demand.
B) It has more of an effect on aggregate demand than if households view it as permanent.
C) It has the same effect on aggregate demand than if households view the cut as permanent.
D) It has less of an effect on aggregate demand than if households view the cut as permanent.