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:

Pain Relief

The alleviation of pain through medication, therapy, or other medical interventions.

Depressants

Substances that reduce the functioning of the nervous system, often used to induce calmness or sleep.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out neural signals.

Slow Down

A decrease in speed or rate, often advised as a cautionary measure to prevent accidents or errors.