Tax increases on business income slow down the rate of increase in aggregate demand by decreasing:

Name: Tax increases on business income slow down the rate of increase in aggregate demand by decreasing:
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Question

Quizplus · Accepted Answer

Tax increases on business income decrease the disposable income of businesses, thereby reducing their capacity to invest in new projects, leading to a decrease in business investment spending. This, in turn, slows down the rate of increase in aggregate demand.

Tax Increases on Business Income Slow Down the Rate of Increase