1 answer

Tax cuts on business income increase aggregate demand by increasing Select one: O a. consumption spending...

Question:

Tax cuts on business income increase aggregate demand by increasing Select one: O a. consumption spending O b. business inves
Tax cuts on business income increase aggregate demand by increasing Select one: O a. consumption spending O b. business investment spending. O c. government spending O d. wage rates

Answers

Answer
Option b
business investment spending
The tax cut on business income so the business investment increases as the after-tax real interest rate increases.

.

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