If the Government Announces a New Increase in Spending with No

Multiple Choice

If the government announces a new increase in spending with no change in taxes,which of the following would most likely occur?

A) No change in the aggregate demand curve as well as no movement along it
B) A leftward shift of the aggregate demand curve
C) An upward movement along the aggregate demand curve
D) A rightward shift of the aggregate demand curve
E) A downward movement along the aggregate demand curve.