Which of the Following Pairs of Policies Shift Aggregate Demand

question 27

Multiple Choice

Which of the following pairs of policies shift aggregate demand in the same direction?

• A)​A tax increase and an increase in the money supply.
• B)​A transfer payment decrease and an increase in the money supply.
• C)​A reduction in government purchases and decline in the money supply.
• D)​An increase in government purchases and a decline in the money supply.

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Definitions:

Issuing Entity

The company or governmental entity that offers securities for sale to investors.

Historical Average

A statistical measure that represents the average outcome of a set of data over a previous period.

Rate of Return

The increase or decrease in the value of an investment during a specific timeframe, represented as a proportion of the investment's initial outlay.

Commodity

A basic good used in commerce that is interchangeable with other commodities of the same type; common examples include grains, gold, beef, oil, and natural gas.