During the 3rd quarter of 1997, japanese gdp was falling at an annual rate of ov

Question

During the 3rd quarter of 1997, japanese gdp was falling at an annual rate of over 11%. many blame the big increase in japan's taxes in the spring of 1997, which was designed to balance the budget.
usually, if taxes are increased,

A. disposable income declines, consumption falls, planned investment increases, planned aggregate expenditure increases, and aggregate income (output) falls.
B. interest rates increase, planned investment falls, planned aggregate expenditure falls, and aggregate income declines.
C. disposable income declines, investment increases, planned aggregate expenditure falls, and aggregate income declines.
D. disposable income declines, consumption falls, planned aggregate expenditure falls, and expenditure income declines.

Is it A, B, C or D?

Explanation / Answer

D. disposable income declines, consumption falls, planned aggregate expenditure falls, and expenditure income declines.

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