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Which of the Following Would Cause Aggregate Demand to Decrease

Question 269

Multiple Choice

Which of the following would cause aggregate demand to decrease?


A) The government increases taxes on both business and personal income.
B) A drop in the foreign exchange value of the dollar
C) The Fed increases the amount of money in circulation.
D) Businesses and households believe that the economy is headed for good times, so they begin to feel increased security about their jobs.

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