Final answer:
Following tax rebates, households likely divided the additional income between savings and consumption. During economic hardships such as in 2009 and 2020, savings rates often increased while consumption decreased. The long-term impact on household income levels from these rebates and stimulus measures is less clear.
Step-by-step explanation:
Nine months after households received their tax rebates, on average, they likely allocated this additional income between consumption and savings. Given the economic uncertainty described during March 2009, households at that time increased their savings rates and reduced consumption. This behavior can be tied to hesitant consumer confidence in their economic future.
Further, with the backdrop of the pandemic-induced recession in 2020, a significant economic stimulus provided relief to households through expanded unemployment insurance, grants, and tax breaks. However, it's important to recognize that not much evidence suggests families greatly improved their total levels of income. The stimulus measures were meant to support the economy during severe downturns by boosting spending, although the long-term effects on household saving and consumption patterns may vary.