Which of the following statements is TRUE? Other things being equal?

Question

which of the following statements is TRUE? Other things being equal:

A. a reduction in taxes in input/income

B. an increase in investment cause a reduction in output/income

C. an increase in government spending cause a reduction in outpu/input

D. an increase in exports cause an increase in output/income

Answer 1

A. a reduction in taxes cause an increase in output/income

(though tax-cut multiplier effect)