07-02-2020
Business

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What would most likely happen if the federal government decreased taxes for its citizens?

A) Aggregate demand would increase, especially for wealthy individuals.

B) Aggregate demand would decrease, especially for wealthy individuals.

C) The US tax code would change from a proportional to a regressive system.

D) The US tax code would change from a progressive to a regressive system.

Respuesta :

martinchuwkuemeka martinchuwkuemeka

07-02-2020

Answer:

A) Aggregate demand will increase, especially for wealthy individuals.

Explanation:

Aggregate demand would increase, especially for wealthy individuals because disposable income would increase as a result of lower tax payable.

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