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:

Discomfort Anxiety

Anxiety or unease stemming from anticipation of discomfort in either physical, emotional, or social situations.

Stressor

Any event, situation, or environmental demand that causes stress to an individual, potentially affecting their mental or physical health.

Behavior

The actions or reactions of an organism, often in response to external stimuli, observable by others.

Change Plan

A strategy or roadmap designed to guide an individual or organization from a current state to a desired future state.