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Business, 18.11.2020 17:10 bommers144
If consumers respond to a tax-cut by saving a large portion of the extra disposable income (or using it to reduce their debts), then the tax-cut policy would:.
a. shift the AE curve down.
b. cause a reduction in aggregate spending.
c. shift the AE curve up significantly.
d. not have much effect on the aggregate expenditures curve.
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