If the Government Raised Transfer Payments by $100 Million While

question 15

Multiple Choice

If the government raised transfer payments by $100 million while reducing its own purchases of computers by $100 million, we would expect the net effect of these actions to be

• A)an increase in aggregate demand, which is a rightward shift of the aggregate demand curve
• B)an increase in aggregate demand, which is a leftward shift of the aggregate demand curve
• C)a decrease in aggregate demand, which is a rightward shift of the aggregate demand curve
• D)a decrease in aggregate demand, which is a leftward shift of the aggregate demand curve
• E)to leave the aggregate demand curve unchanged

---

Definitions:

Physical Discipline

A method of correcting or controlling behavior by applying a physical force or action, typically involving spanking or hitting.

Warm Parents

Parents who exhibit affection, responsiveness, and supportive behaviors towards their children, fostering a positive and secure attachment.

Power Assertion

A disciplinary technique that involves the use of authority or physical force to control or correct a child's behavior.

Forced Insistence

Involves compelling someone to accept an idea or condition through persistent pressure or demand.