Question

2. A tax cut
(a) increases consumption expenditure by reducing disposable income, thereby shifting the IS
curve to the right.
(b) increases consumption expenditure by increasing disposable income, thereby shifting the
LM curve to the right.
(c) increases consumption expenditure by increasing disposable income, thereby shifting the IS
curve to the right.
(d) decreases consumption expenditure by reducing disposable income, thereby shifting the LM
curve to the right​

Answer 1

Answer:

c is the most common answer

Answer 2

Answer:

C is most common

C is most common