A lower income tax rate __________ consumption,causing a __________ the AD curve.
A) stimulates; rightward shift of
B) stimulates; movement down along
C) depresses; leftward shift of
D) depresses; movement up along

Question

Quizplus · Accepted Answer

A lower income tax rate means people have more disposable income which they can spend on consumption, stimulating a rightward shift of the AD (Aggregate Demand) curve.

A Lower Income Tax Rate __________ Consumption,causing a __________ the AD

A Lower Income Tax Rate Consumption,causing a the AD