Final answer:
A decrease in net taxes generally leads to an increase in consumption as disposable income increases, which in turn can expand overall economic activity and shift aggregate demand to the right. option (B)
Step-by-step explanation:
The impact of a decrease in net taxes on the consumption component of planned aggregate expenditures is that it typically increases consumption. When net taxes are reduced, disposable income increases, which generally leads to an increase in consumption spending by the amount of the tax cut multiplied by the marginal propensity to consume.
Consequently, such a tax cut could lead to an expansion in the overall level of economic activity and shift the aggregate demand (AD) curve to the right.