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How do changes in income tax policies affect aggregate demand?

Tidy

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How do changes in income tax policies affect aggregate demand?

How do changes in income tax policies affect aggregate demand?
A) Higher taxes increase disposable income, consumption, and aggregate demand.
B) Higher taxes reduce disposable income, consumption, and aggregate demand.
C) Higher taxes increase corporate investment and aggregate demand.
D) Higher taxes increase aggregate supply and thus increase aggregate demand as well.

Textbook

Essentials of Economics

Essentials of Economics

Edition: 4^th

Authors: Hubbard, O'Brien

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Smoooth

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