_____ when net taxes are reduced.
A)Net exports decrease
B)Government purchases remain constant
C)Government purchases rise
D)Consumption falls
E)Consumption rises

Name: _____ when net taxes are reduced. A)Net exports decrease B)Government purchases remain constant C)Government purchases rise D)Consumption falls E)Consumption rises
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Question

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When net taxes are reduced, households have more disposable income, which increases their consumption. This leads to a rise in consumption.

_____ When Net Taxes Are Reduced