Everything else remaining the same, a decrease in the income tax rate will result in
A)a downward shift of the AE curve with no change in its slope.
B)an upward shift of the AE curve with no change in its slope.
C)a movement down along the aggregate expenditure curve.
D)a decrease in the consumption expenditure.
E)an AE curve with a steeper slope.

Question

Quizplus · Accepted Answer

The Answer of Everything else remaining the same, a decrease in the income tax rate will result in
A)a downward shift of the AE curve with no change in its slope.
B)an upward shift of the AE curve with no change in its slope.
C)a movement down along the aggregate expenditure curve.
D)a decrease in the consumption expenditure.
E)an AE curve with a steeper slope.

Everything Else Remaining the Same, a Decrease in the Income