Which of the Following Tends to Make Aggregate Demand Shift

question 31

Multiple Choice

Which of the following tends to make aggregate demand shift right farther than the amount that government expenditures increase?

• A)the crowding-out effect
• B)the multiplier effect
• C)the wealth effect
• D)the interest-rate effect

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Definitions:

Vestibular Senses

A sensory system responsible for providing our brain with information about motion, head position, and spatial orientation; it helps with balance and eye movements.

Basilar Membrane

A membrane in the cochlea of the inner ear; it plays a crucial role in the sense of hearing by vibrating in response to sound, which in turn stimulates hair cells to send nerve impulses to the brain.

Roller Coaster

A type of amusement ride that involves rapid movements on a track with tight turns, steep slopes, and sometimes inversions, providing thrilling experiences.

Taste Buds

Sensory organs located on the tongue and other parts of the mouth that are responsible for perceiving different tastes.