Other things being equal, a reduction in taxes will A) lead to a corr

Other things being equal, a reduction in taxes will

A) lead to a corresponding reduction in interest rates increasing the crowding out effect.
B) influence the short run aggregate supply curve but not the aggregate demand curve.
C) cause an increase in aggregate demand due to increases in consumption, investment, or net exports.
D) lead to a reduction in the long run aggregate supply curve as businesses enjoy greater profits.

ANSWER

C