Answer:
The correct answer is (B)
Explanation:
A Tax-cut has many benefits on the overall economic performance of a country. When consumers see a tax-cut, it increases their demand for goods so a tax-cut is beneficial to the equilibrium GDP if the marginal propensity to save decrease due to a tax-cut. If the marginal propensity of save decreases it ultimately benefits the production sector of a country. More production means a better gross domestic product.
