Lower personal income taxes
A)increase aggregate demand.
B)decrease disposable income.
C)decrease aggregate demand.
D)increase transfer payments.
E)reduce household wealth.

Name: Lower personal income taxes A)increase aggregate demand. B)decrease disposable income. C)decrease aggregate demand. D)increase transfer payments. E)reduce household wealth.
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Question

Quizplus · Accepted Answer

Lowering personal income taxes increases disposable income, which in turn increases consumption spending and therefore aggregate demand.

Lower Personal Income Taxes