If a "Liberal" Wanted to Decrease Aggregate Demand, Which of the Following

question 30

Multiple Choice

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

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

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Definitions:

Federal Aid

Financial assistance provided by the federal government to state or local governments, institutions, or individuals for a variety of purposes.

Antimasons

A historical political movement that emerged in the early 19th century United States, opposing Freemasonry due to concerns about its secrecy and influence.

Convention System

Refers to the process by which political parties select their candidates for election through conventions, replacing the earlier caucus system and leading to more democratic participation within the party.

Presidential Primary

A primary election in which the voters indicate preferences for nominees for President of the United States directly by vote or indirectly through the selection of delegates.