Which of the Following Would Increase Aggregate Demand

question 143

Multiple Choice

Which of the following would increase aggregate demand?

• A)A deficit in the government budget
• B)An increase in taxes
• C)An increase in government borrowing
• D)A surplus in the government budget
• E)A decrease in government spending

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Definitions:

Unlimited Joint Liability

A legal obligation among partners that holds each personally responsible for the total debts of a partnership without limits.

Capital Accounts

Financial records that show the ownership equity in a company, including initial capital contributions, retained earnings, and withdrawals by owners.

Outstanding Liabilities

Financial obligations that a company or individual has not yet settled.

Liquidated Assets

Assets that have been converted into cash or cash equivalents by selling them.