Multiple Choice
Which of the following policies would Keynes's followers support when an increase in business optimism shifts the aggregate demand curve to the right away from long-run equilibrium?
A) decreasing taxes
B) decreasing the interest rate
C) increasing the money supply
D) increasing taxes
Correct Answer:

Verified
Correct Answer:
Verified
Q32: What is the variable that balances the
Q37: What is the main reason the aggregate
Q39: What is the difference between the effects
Q52: Assume that the MPC is 0.8. Assume
Q58: Suppose the closed economy is in long-run
Q67: Stock prices often rise when the Bank
Q76: The main criticism of those who doubt
Q122: According to liquidity-preference theory, if the quantity
Q144: When a central bank sets a target
Q215: What did Keynes argue about aggregate demand?<br>A)Aggregate