How Does a Change in Taxes Primarily Affect Aggregate Demand

question 84

Multiple Choice

How does a change in taxes primarily affect aggregate demand?

• A)​A tax change alters exports and net exports.
• B)​A tax change alters investment by an equal and opposite amount.
• C)​A tax change alters disposable income and consumption spending.
• D)​A tax change alters government purchases by an equal amount.

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