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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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    Government Purchases Are Said to Have a
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Government Purchases Are Said to Have a

Question 45

Question 45

Multiple Choice

Government purchases are said to have a


A) multiplier effect on aggregate supply.
B) multiplier effect on aggregate demand.
C) liquidity-enhancing effect on aggregate supply.
D) liquidity-enhancing effect on aggregate demand.

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