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.
Correct Answer:
Verified
Correct Answer:
Verified
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