Other Things Being Equal, a Reduction in Taxes Will

Other things being equal, a reduction in taxes will

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

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