A decrease in the personal income tax rate ________ disposable income which ________ consumption.

Name: A decrease in the personal income tax rate ________ disposable income which ________ consumption.
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Question

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When personal income tax rate decreases, individuals have more disposable income (income after taxes), which increases their purchasing power and ability to consume goods and services. Therefore, a decrease in personal income tax rate increases disposable income which increases consumption.

A Decrease in the Personal Income Tax Rate ________ Disposable