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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Fiscal Policy Influences Aggregate Demand
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    When Taxes Increase,the Interest Rate
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When Taxes Increase,the Interest Rate

Question 69

Question 69

Multiple Choice

When taxes increase,the interest rate


A) increases,making the change in aggregate demand larger.
B) increases,making the change in aggregate demand smaller
C) decreases,making the change in aggregate demand larger.
D) decreases,making the change in aggregate demand smaller.

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