An increase in tax rates affects equilibrium real gdp through two channels: disposable income and consumer spending, and the size of the multiplier effect. group of answer a. choices increasing; b. decreasing decreasing; c. decreasing increasing; d. increasing decreasing; e. increasing

B decreasing increasing

Explanation:

The increase in tax rate will affect disposable income available for spending after tax deduction this will have an increasing multiplier effect as it reduces consumption which leads to a fall in companies turnover, lower profit , lower companies tax, staff layoff, increase crime rate, increase security spending and the list continues.

answer; (d) i believe that the correct answer is ; /// a new invention lowers the cost of production;

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