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.

---

Definitions:

Pooled Talent

The strategy of combining skills, knowledge, and competencies of individuals from various backgrounds to achieve common goals or tackle complex problems.

Pooled Resources

The amalgamation of assets or capital from multiple sources or individuals for a common purpose, often to achieve a goal that would be difficult to achieve individually.

Tax Advantages

Financial benefits that apply to certain investments or accounts, which can reduce the amount of tax owed to the government.

Right of First Refusal

A contractual right that gives its holder the option to enter a business transaction with the owner of something, before the owner is entitled to enter into that transaction with a third party.