A permanent decrease in taxes leads to

Question

Quizplus · Accepted Answer

When taxes are permanently decreased, individuals and households have more disposable income, which can lead to an increase in current consumption. This is because consumers have more money to spend on goods and services, and may choose to do so instead of saving or investing the additional funds. However, it is important to note that the size of the increase in consumption may depend on a variety of factors, such as the size of the tax cut, the economic environment, and individual preferences.

A Permanent Decrease in Taxes Leads to