Suppose the Government Decreases Lump-Sum Taxes. This Causes

Suppose the government decreases lump-sum taxes. This causes

A) disposable income to increase, which causes consumption spending to decrease and aggregate demand to increase.
B) government spending to decrease, which causes aggregate demand to decrease.
C) consumption spending to decrease and spending on imports to increase. The effect on aggregate demand depends on whether domestic spending or spending on imports decreased the most.
D) disposable income to decrease, which causes aggregate supply to decrease.