A decrease in the tax rates in an economy will cause a: ​leftward...

A decrease in the tax rates in an economy will cause a:

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• ​leftward shift of the aggregate demand curve if the crowding-out effect is smaller than the size of the tax multiplier.
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• rightward shift of the aggregate demand curve if the crowding-out effect is equal to the size of the tax multiplier.
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• leftward shift of the aggregate demand curve if the crowding-out effect is larger than the size of the tax multiplier.
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• ​rightward shift of the aggregate demand curve if the crowding-out effect is larger than the size of the tax multiplier.