Other Things Equal, a Reduction in Personal and Business Taxes

question 123

Multiple Choice

Other things equal, a reduction in personal and business taxes can be expected to

• A) increase aggregate demand and decrease aggregate supply.
• B) increase both aggregate demand and aggregate supply.
• C) decrease both aggregate demand and aggregate supply.
• D) decrease aggregate demand and increase aggregate supply.

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Definitions:

Direct Marketing Database

A collection of data about customers or potential customers that is used to tailor marketing strategies directly to the interests of individuals.

Income Tax Rate

The percentage of an individual's or corporation's income that is paid to the government as tax.

Catalog

A comprehensive collection or list of items, especially one systematically arranged, often found in printed form or online for shopping purposes.

Media Usage

The manner and extent to which individuals or organizations use various channels of communication to receive or disseminate information.