A decrease in net taxes:

A) raises aggregate expenditure by raising disposable income,thereby increasing consumption.
B) raises aggregate expenditure by raising disposable income,thereby decreasing consumption.
C) lowers aggregate expenditure by lowering disposable income,thereby decreasing consumption.
D) lowers aggregate expenditure by lowering disposable income,consumption remaining constant.
E) has no effect on aggregate expenditure.

Net Taxes

refer to the total amount of taxes paid to governments by individuals and businesses after accounting for transfers and subsidies received from the government.

Aggregate Expenditure

The sum of all expenditures within an economy, encompassing spending on goods and services, investment in businesses, government outlays, and the balance of exports minus imports.

Disposable Income

The amount of money a household or individual has available to spend or save after income taxes have been deducted.