Multiple Select Question

Question

Select all that apply

Which of the following result from a reduction in personal income tax rates on consumers?
Multiple select question.

Decreased take-home income

Decreasing consumer purchases at each possible price level

Increased take-home income

Increasing consumer purchases at each possible price level

Answer 1

The correct answers are:

• Increased take-home income
• Increasing consumer purchases at each possible price level

A reduction in personal income tax rates generally leads to an increase in take-home income for consumers, giving them more disposable income to spend. This often results in increased consumer purchases across various price levels.