When taxes decrease, disposable income increases, so consumption and aggregate demand increase. O increases, so consumption and aggregate demand decrease. O decreases, so consumption and aggregate demand decrease. decreases, so consumption and aggregate demand increase.

When taxes decrease, disposable income increases, so consumption and aggregate demand increase. O increases, so consumption and aggregate demand decrease. O decreases, so consumption and aggregate demand decrease. decreases, so consumption and aggregate demand increase.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter19: The Keynesian Model In Action

Section: Chapter Questions

Problem 8SQ

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MCQ

When taxes decrease, disposable income
increases, so consumption and aggregate demand increase.
increases, so consumption and aggregate demand decrease.
decreases, so consumption and aggregate demand decrease.
decreases, so consumption and aggregate demand increase

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