The main policy tool for manipulating consumer spending is

Question

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Personal income tax is the main policy tool for manipulating consumer spending because it directly affects the disposable income of consumers. By decreasing or increasing personal income tax, the government can either stimulate or restrain consumer spending. When personal income taxes are decreased, consumers have more disposable income to spend on goods and services, which can boost economic growth. On the other hand, when personal income taxes are increased, consumers have less disposable income, which can decrease consumer spending and slow down economic growth.

The Main Policy Tool for Manipulating Consumer Spending Is