Multiple Choice
How do lower income 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.
E) They reduce the price level relative to other countries, thus reducing aggregate demand.
Correct Answer:
Verified
Correct Answer:
Verified
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