Which One of the Following Is TRUE About the Effects

question 14

Multiple Choice

Which one of the following is TRUE about the effects of fiscal policy?

• A)A decrease government spending will increase aggregate supply.
• B)A tax change does not have any direct or indirect effects on aggregate demand.
• C)A decrease in government spending will decrease aggregate demand.
• D)An increase in government spending will reduce aggregate demand.

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Definitions:

Feels Little Pain

A condition or state in which an individual has a significantly reduced sensitivity to pain, which can be due to genetic factors, neurological conditions, or other reasons.

Injured

The state of having physical harm or damage to the body, often resulting from accidents, violence, or sports.

Battle

is a combat between two or more armed forces or combatants, typically involving physical violence and strategy.

Olfactory Receptors

Specialized neurons in the nasal cavity that are responsible for the detection of odor molecules, leading to the sense of smell.