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19 June, 05:02

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?

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  1. 19 June, 05:43
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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.
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