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? asked in Business & FinanceCorporations · 1 decade ago

How do lower taxes affect aggregate demand?

1. They increase disposable income, consumption, and aggregate demand.

2. They reduce disposable income, consumption and aggregate demand

3. They increaase corporate investments and aggregate demand.

4. They increase aggregate supply and thus increase aggregate demand as well

PICK ONE (MULTIPLE CHOICE)

Update:

I think its 1. but i want to make sure

1 Answer

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  • Anonymous
    1 decade ago
    Favorite Answer

    You are correct. Answer 1.

    Too bad we're not in that scenario now. . .

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