If the US Government Increases Its Expenditures (Without Any Changes in Taxes)while

question 49

Multiple Choice

If the U.S. government increases its expenditures (without any changes in taxes) while the Federal Reserve Bank decreases the money supply:

• A)the AD curve would likely shift to the left.
• B)the AD curve would likely shift to the right.
• C)the AD curve would likely remain unchanged.
• D)what happens to the AD curve is unclear.

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