Question: Which one is the correct answer? A cut in tax rates affects equilibrium real GDP through two channels: ________ disposable income and consumer spending, and

Which one is the correct answer?

A cut in tax rates affects equilibrium real GDP through two channels: ________ disposable income and consumer spending, and ________ the size of the multiplier effect.

A.increasing; decreasing

B. increasing; increasing

C. decreasing; decreasing

D. decreasing; increasing

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