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Which of the Following Best Describes Movement Along the AD

Question 35

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) 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.

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