Everything Else Remaining the Same, a Decrease in the Income

question 30

Multiple Choice

Everything else remaining the same, a decrease in the income tax rate will result in

• A)a downward shift of the AE curve with no change in its slope.
• B)an upward shift of the AE curve with no change in its slope.
• C)a movement down along the aggregate expenditure curve.
• D)a decrease in the consumption expenditure.
• E)an AE curve with a steeper slope.