Multiple Choice
Which of the following best describes movement along the AD curve?
A) A change in the inflation rate causes the central bank to change interest rates, thereby causing a corresponding proportional change in investment.
B) A sudden increase in the tax rate.
C) A change in monetary policy.
D) A change in the inflation rate causes the federal government to reduce discretionary spending.
E) A change in unemployment causes the federal government to reduce discretionary spending.
Correct Answer:

Verified
Correct Answer:
Verified
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