A Significant Example of a Temporary Tax Cut Was the One

Multiple Choice

A significant example of a temporary tax cut was the one announced in 1992 by President George H. W. Bush. The effect of that tax cut on consumer spending and aggregate demand was

A) zero.
B) likely smaller than if the cut had been permanent.
C) likely about the same as if the cut had been permanent.
D) likely larger than if the cut had been permanent.