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A Decrease in Net Taxes

Question 46

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,thereby increasing consumption
E) has no effect on aggregate expenditure

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