To Try to Stimulate Aggregate Demand to End a Recession

question 71

Multiple Choice

To try to stimulate aggregate demand to end a recession, a government could:

• A) reduce the money supply or contract fiscal policy to decrease total spending.
• B) reduce the money supply or contract fiscal policy to increase total spending.
• C) increase the money supply or expand fiscal policy to decrease total spending.
• D) increase the money supply or expand fiscal policy to increase total spending.

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Definitions:

Hemoglobin

An iron-containing protein in red blood cells that transports oxygen from the lungs to the tissues of the body.

Oxygen Gas

A diatomic molecule consisting of two oxygen atoms, essential for respiration in most living organisms and used in various industrial processes.

Carbon Monoxide

A colorless, odorless gas produced by the incomplete burning of carbon-containing materials, toxic to humans and animals when inhaled.