Which Statement Is TRUE of the Difference Between a Tax

Which statement is TRUE of the difference between a tax cut and a tax rebate?

A) A tax cut only increases the incentive to spend,while a tax rebate only increases the incentive to work.
B) A tax cut only increases the incentive to work,while a tax rebate only increases spending.
C) A tax cut increases the incentive to work and the incentive to spend,while a tax rebate only increases the incentive to spend.
D) A tax cut only increases the incentive to spend,but a tax rebate increases the incentive to work and the incentive to spend.

Correct Answer:

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