Other Things Being Equal,an Economy with a Higher Net Tax

Multiple Choice

Other things being equal,an economy with a higher net tax rate will have a ________ marginal propensity to spend and thus a ________ AD curve compared to an economy with a lower net tax rate.

A) lower; steeper
B) higher; flatter
C) higher; steeper
D) lower; rightward shift of the
E) lower; leftward shift of the