A tax _______ income.

Name: A tax _______ income.
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Question

Quizplus · Accepted Answer

When taxes are cut, people have more money to spend, which increases their disposable income. Therefore, D is the correct choice. The other options are incorrect because an increase in taxes decreases disposable income (C), an increase in taxes can either raise or lower national income depending on various factors (A), and an increase in taxes does not necessarily lead to a decrease in planned income (B).

A Tax _______ Income