Solved

-Refer to Figure 14-9

Question 14

Multiple Choice

-Refer to Figure 14-9.If the aggregate expenditure line shifts from AE₁(r = 8%) to AE₂(r = 10%) ,which of the following is the most likely cause of that shift? A) An increase in the money supply B) A decrease in the money supply C) An increase in government purchases D) A decrease in government purchases E) An increase in taxes.
-Refer to Figure 14-9.If the aggregate expenditure line shifts from AE₁(r = 8%) to AE₂(r = 10%) ,which of the following is the most likely cause of that shift?


A) An increase in the money supply
B) A decrease in the money supply
C) An increase in government purchases
D) A decrease in government purchases
E) An increase in taxes.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q9: If the Fed wishes to increase the

Q10: If the interest rate dropped,what would be

Q11: What will be the effects of a

Q12: The money market reaches equilibrium when<br>A) money

Q13: An individual would be most likely to

Q15: An excess supply of money implies an

Q16: If the interest rate is above its

Q17: Open market purchases of bonds by the

Q18: In the short-run macro model,a decrease in

Q19: The money market achieves equilibrium when<br>A) individuals