If the Government Raised Transfer Payments by $100 Million While

Multiple Choice

If the government raised transfer payments by $100 million while reducing its own purchases of computers by $100 million, 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