During the third quarter of 1997, Japanese GDP was falling at an annual rate of over 11 percent. Many blamed the big increase in Japan's taxes in the spring of 1997, which was designed to balance the budget. How could an increase in taxes with the economy growing slowly precipitate a recession? When taxes increase, disposable income will . As disposable income it causes consumption to which output/income. O A. fall; decreases; decline; reduces O B. rise; increases; increase; raises O C. rise; increases; decrease; reduces O D. fall; decreases; increase; raises What action could the central bank take to counteract the affects of the increase in taxes? The central bank could the money supply, which would interest rates and investment. O A. decrease; decrease; stimulate O B. increase; increase; reduce O C. decrease; increase; reduce O D. increase; decrease; stimulate