A) Decrease Aggregate Demand by Increasing the Interest Rate from 2

question 117

Multiple Choice

• A) decrease aggregate demand by increasing the interest rate from 2 to 4 percent.
• B) decrease aggregate demand by increasing the interest rate from 4 to 6 percent.
• C) increase aggregate demand by decreasing the interest rate from 4 to 2 percent.
• D) increase the level of investment spending from $120 billion to $150 billion.

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Definitions:

Sherman

Refers to William Tecumseh Sherman, a Union General during the American Civil War known for his March to the Sea and the concept of "total war."

Total War

A strategy of warfare that mobilizes all of a nation's resources, including civilians and the economy, to achieve a complete victory, often disregarding the distinction between combatant and non-combatant targets.

Atlanta

is the capital city of Georgia in the United States, known for its significant role in the civil rights movement and as a major economic and cultural center in the southeast.

Civil War

A war between citizens of the same country, often due to political, social, or economic disagreements.