Multiple Choice
Which of the following pairs of policies shift aggregate demand in the same direction?
A) A tax increase and an increase in the money supply.
B) A transfer payment decrease and an increase in the money supply.
C) A reduction in government purchases and decline in the money supply.
D) An increase in government purchases and a decline in the money supply.
E) None of the above pairs of policies shift aggregate demand in the same direction.
Correct Answer:
Verified
Correct Answer:
Verified
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