If a "Conservative" Wanted to Increase Aggregate Demand, Which of the Following

question 80

Multiple Choice

If a "conservative" wanted to increase aggregate demand, which of the following would she tend to favor?

• A)An increase in government spending, because it has a larger multiplier than tax changes.
• B)A decrease in transfer payments, because it keeps the public sector small.
• C)An increase in transfer payments, because it has a larger multiplier than tax changes.
• D)A decrease in taxes, because it makes the public sector smaller.

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Definitions:

Bipolar Disorder

A mental disorder marked by extreme mood swings, including manic and depressive episodes, affecting a person's energy, behavior, and ability to function.

Children

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Depression

A common and serious mood disorder featuring persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Rage and Aggression

Intense, uncontrollable anger that can lead to verbal or physical hostility towards others or oneself.