Fiscal Policy Affects Aggregate Demand

question 139

Multiple Choice

Fiscal policy affects aggregate demand:

• A)through two channels.
• B)directly and indirectly.
• C)and can increase or decrease it.
• D)All of these are true.

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Definitions:

Adopted Children

Young individuals who have been legally taken into a family that is not their biological relatives, gaining all the rights and privileges of a biological child.

Psychogenic

Originating from psychological factors rather than physical causes.

Paralysis

The loss of the ability to move (and sometimes to feel anything) in part or most of the body, typically as a result of illness, poison, or injury.

Irrational

Thinking or behavior that is not based on sound reasoning, logic, or factual evidence.