Which of the Following Government Policies Would Increase Aggregate Demand

question 14

Multiple Choice

Which of the following government policies would increase aggregate demand?

• A)a deficit in the government budget
• B)a stimulation of investment through an increase in taxes
• C)a stimulation of consumption through an increase in taxes
• D)a surplus in the government budget
• E)a decrease in government spending

---

Definitions:

Framingham

A city in Massachusetts known for the Framingham Heart Study, a long-term, ongoing cardiovascular cohort study.

Testable

Testable describes a hypothesis or theory that can be empirically examined through experimentation or observation, allowing for verification or falsification.

Critical Period

A specific time in early development during which the organism is particularly receptive to certain stimuli, often resulting in permanent, irreversible outcomes.

Cohort

A group of people who share a common characteristic or experience within a defined period, often used in statistical and sociological research.