How Do Lower Taxes Affect Aggregate Demand

question 98

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:

Design View

A mode in software applications that allows the user to edit or layout the document or database visually.

Structure View

An overview representation of a document’s framework, often seen in software to navigate sections or elements of a complex document or website.

Layout View

A feature in database and document software that allows users to see how a document or database form will look when printed or viewed on screen.

Table View

A method of displaying data in rows and columns, similar to a spreadsheet.