We would expect a decline in personal and corporate income taxes to:
A)shift the aggregate demand curve rightward.
B)increase consumption and investment spending.
C)increase the real output.
D)all of these.

Question

Quizplus · Accepted Answer

A decline in personal and corporate income taxes would increase consumer and business disposable income, leading to an increase in consumption and investment spending. This would result in an increase in aggregate demand and ultimately real output.

We Would Expect a Decline in Personal and Corporate Income