How Do Lower Taxes Affect Aggregate Demand

question 256

Multiple Choice

How do lower taxes affect aggregate demand?

• A)They increase disposable income,consumption,and aggregate demand.
• B)They reduce disposable income,consumption,and aggregate demand.
• C)they increase corporate investment and aggregate demand.
• D)They increase aggregate supply and thus increase aggregate demand as well.

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Definitions:

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A condition present at birth where the thyroid gland produces insufficient amounts of thyroid hormone, crucial for growth and metabolism.

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Relating to the period of time before birth, encompassing the development and care of the fetus during pregnancy.