If the Government Increased Autonomous Net Taxes by $60 Million

Multiple Choice

If the government increased autonomous net taxes by $60 million and increased its own purchases by the same amount, we would expect the net effect of these actions to be

A) an increase in aggregate demand, which is a rightward shift of the aggregate demand curve
B) an increase in aggregate demand, which is a leftward shift of the aggregate demand curve
C) a decrease in aggregate demand, which is a rightward shift of the aggregate demand curve
D) a decrease in aggregate demand, which is a leftward shift of the aggregate demand curve
E) to leave the aggregate demand curve unchanged