What Is the Main Claim of the Aggregate Expenditures Model

question 119

Multiple Choice

What is the main claim of the aggregate expenditures model?

• A) The rich get richer and the poor get poorer.
• B) Spending will generate income, which allows for more spending.
• C) Lower taxes for businesses will "trickle-down" to consumers.
• D) Spending is harmful while saving is helpful to an economy.

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