contestada

How do lower taxes affect aggregate​ demand?
a. they reduce disposable​ income, consumption, and aggregate demand.
b. they increase corporate investment and aggregate demand.
c. they increase disposable​ income, consumption, and aggregate demand.
d. they increase aggregate supply and thus increase aggregate demand as well?

Respuesta :

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Lower taxes affect aggregate demand by C. increasing the availability of disposable income, leading to more consumption, and an increase in aggregate demand.