If the Government Announces a Big Tax Cut,which of the Following

question 50

Multiple Choice

If the government announces a big tax cut,which of the following combinations of events would be most likely to occur?

• A) An upward shift of the aggregate expenditure line,a rightward shift of the money demand curve,and a rightward shift of the aggregate demand curve
• B) A downward shift of the aggregate expenditure line,a leftward shift of the money demand curve,and a leftward shift of the aggregate demand curve
• C) An upward shift of the aggregate expenditure line,a leftward shift of the money demand curve,and a rightward shift of the aggregate demand curve
• D) A downward shift of the aggregate expenditure line,a rightward shift of the money demand curve,and a rightward shift of the aggregate demand curve
• E) An upward shift of the aggregate expenditure line,a rightward shift of the money demand curve,and a leftward shift of the aggregate demand curve.

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Definitions:

Cold War

A period of geopolitical tension between the Soviet Union and the United States, marked by espionage, political rivalry, and the threat of nuclear warfare, from the end of World War II to the dissolution of the Soviet Union in 1991.

Nuremberg Trials

A series of military tribunals held after World War II to prosecute prominent leaders of Nazi Germany for war crimes.

Crimes Against Humanity

Serious violations of human rights that are committed as part of a wide or systematic attack directed against any civilian population, with knowledge of the attack.

Henry Luce

An influential American magazine publisher who founded Time, Life, Fortune, and Sports Illustrated, significantly shaping American media and public opinion in the 20th century.