Because fluctuations in the world oil price make the U.S. short-run macroeconomic equilibrium fluctuate, someone suggests that the government should vary the tax rate on oil, lowering the tax when the world oll price rises and increasing the tax when the world oil price falls, to stablize the oil price in the U.S. market.
Such an action

A Increases aggregate demand when the tax falls because it decreases investment
B. Decreases aggregate demand when the tax rises because it decreases govemment expenditure on goods and services
C. Increases aggregate demand when the tax falls because it increases disposable income, which increases consumption expenditure
D. Increases aggregate demand when the fax rises because it increases investment
E. Decmases aggregate demand when the tax falls because it decreases government expelditure on goods and services