How Do Changes in Income Tax Policies Affect Aggregate Demand

question 272

Multiple Choice

How do changes in income tax policies affect aggregate demand?

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

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Definitions:

Intranets

Private networks accessible only to an organization's staff, often used for sharing information, collaboration, and communication internally.

Preventive Discipline

Action taken prior to an infraction to encourage employees to follow standards and rules.

Rule Infraction

A violation or breach of workplace rules, policies, or expectations.

Open-door Policy

A management practice that encourages open communication and accessibility between employees and senior management.