19. The United States government has decided to decrease taxes. What is their most likely goal? increase consumer spending decrease business investments decrease in aggregate demand reduction in the employment rate

## Step 1<br />The problem is about understanding the economic implications of a government's decision to decrease taxes. The government's decision to decrease taxes is a fiscal policy tool that can be used to stimulate economic activity.<br /><br />## Step 2<br />When the government decreases taxes, individuals and businesses have more disposable income. This means they have more money to spend or invest.<br /><br />## Step 3<br />The increase in disposable income can lead to an increase in consumer spending. This is because individuals have more money to spend on goods and services.<br /><br />## Step 4<br />Similarly, businesses also have more money to invest in their operations. This can lead to an increase in business investments.<br /><br />## Step 5<br />The increase in consumer spending and business investments can lead to an increase in aggregate demand. Aggregate demand is the total demand for goods and services within an economy.<br /><br />## Step 6<br />The increase in aggregate demand can stimulate economic growth. This is because when demand for goods and services increases, businesses need to produce more to meet this demand. This can lead to an increase in employment rates.