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Higher Personal Tax Rates

Question 5

Multiple Choice

Higher personal tax rates


A) cause the relationship between consumption expenditures and GDP to become flatter.
B) increase household disposable income.
C) change the amount people want to spend out of each after-tax dollar but leave the spending percentage of pretax income unchanged.
D) cause equilibrium levels of GDP to rise.
E) are mandated by the Employment Act of 1946.

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