In the figure above, if income taxes increase,
A. the AE curve becomes steeper.
B. the AE curve becomes flatter.
C. there is a movement leftward along the unchanged AE curve.
D. there is a movement rightward along the unchanged AE curve.
Answer:B
In the figure above, if income taxes increase,
A. the AE curve becomes steeper. B. the AE curve becomes flatter. C. there is a movement leftward along the unchanged AE curve. D. there is a movement rightward along the unchanged AE curve.