Which of the Following Will Increase Aggregate Expenditure in Canada

question 296

Multiple Choice

Which of the following will increase aggregate expenditure in Canada?

• A)an increase in the value of the dollar
• B)an increase in the price level
• C)an increase in interest rates
• D)an increase in government purchases
• E)a rise in interest rates

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Definitions:

Tax Expenditures

Refers to revenue losses attributable to provisions of the federal tax laws which allow a special exclusion, exemption, or deduction.

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate trade between the states, with foreign nations, and among Indian tribes.

Power to Tax

The authority granted to government entities to impose levies on individuals and corporations to fund public services and initiatives.

Individual Mandate

A requirement that individuals must have health insurance coverage or face penalties, as outlined in the Affordable Care Act.