Suppose the Government Want to Increase Aggregate Demand Without Increasing

question 18

Multiple Choice

Suppose the government want to increase aggregate demand without increasing interest rates.You would recommend

• A)reducing transfer payments and increasing the money supply.
• B)increasing government spending and reducing the money supply.
• C)increasing taxes and the money supply.
• D)increasing government spending and the money supply.

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Definitions:

Good Faith

The principle of entering into agreements or negotiations with honest intentions without intending to defraud the other party.

Indemnify

To compensate for harm or loss suffered, or to protect someone by promising to cover any damages or losses they might incur.

Exercise Care

The obligation to act with the prudence, caution, and attentiveness of a reasonable person in order to avoid harm to others.

Duties Under Tort Law

Obligations recognized by law for individuals or entities to avoid causing harm or injury to others, breach of which may result in liability.