Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: Fiscal Policy Options
-(Figure: Fiscal Policy Options) Look at the figure Fiscal Policy Options. If the aggregate demand curve is ADʺ, the most appropriate discretionary fiscal policy is to _____ government transfer payments and _____ income tax rates.

A) decrease; increase
B) decrease; decrease
C) increase; maintain
D) increase; decrease