Multiple Choice
Which of the following statements is FALSE ?
A) Government expenditure affects aggregate demand directly because government expenditure is a component of aggregate demand.
B) Fiscal policy is the attempt to influence the economy using taxes, transfer payments, and government expenditures.
C) Taxes and transfer payments affect aggregate demand by changing disposable income.
D) An increase in disposable income leads to a decrease in aggregate demand.
Correct Answer:
Verified
Correct Answer:
Verified
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