Which of the Following Explains the Effects of an Increase

Multiple Choice

Which of the following explains the effects of an increase in net taxes?  

A)  An increase in net taxes raises aggregate expenditure by raising disposable income, thereby increasing consumption. 
B)  An increase in net taxes raises aggregate expenditure by raising disposable income, thereby decreasing consumption. 
C)  An increase in net taxes lowers aggregate expenditure by lowering disposable income, thereby increasing consumption. 
D)  An increase in net taxes lowers aggregate expenditure by lowering disposable income, thereby decreasing consumption.