A Decrease in Net Taxes

question 129

Multiple Choice

A decrease in net taxes:

• A)raises aggregate expenditure by raising disposable income,thereby increasing consumption.
• B)raises aggregate expenditure by raising disposable income,thereby decreasing consumption.
• C)lowers aggregate expenditure by lowering disposable income,thereby decreasing consumption.
• D)lowers aggregate expenditure by lowering disposable income,consumption remaining constant.
• E)has no effect on aggregate expenditure.

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Definitions:

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