The answer is d, i.e. High Income, as would a consumption tax. Indirect taxes are considered regressive due to tax consumption instead of financial gain, and wealthier individuals save the next proportion of their financial gain.
Taxation reduces the getting power of individuals, and it reduces their consumption. The decline in consumption results in a decrease in effective demand for the products and services, which successively affects the assembly of those commodities.
Policymakers need to take varied factors under consideration once endeavor-wide issues like state, inflation, and a country's current gross domestic product (GDP). Philosophies on the way to accomplish growth and a healthy economy vary.
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