An increase in the income tax rate in an attempt to decrease a country's debt-to-GDP ratio may not be effective because O a. It will reduce disposable income and consumption expenditure O b. It will...

Extracted text: An increase in the income tax rate in an attempt to decrease a country's debt-to-GDP ratio may not be effective because O a. It will reduce disposable income and consumption expenditure O b. It will reduce firms expectations of growth in future sales All of the answers are correct O d. It will reduce investment in new capital stock