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

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Definitions:

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Maximize Profits

The process or strategy where a business aims to achieve the highest possible profit margin within its operation, considering constraints and market conditions.

Discriminatory Wage Differentials

Pay differences that do not reflect differences in skills, responsibilities, or performance but rather discrimination based on race, gender, or other non-performance-related factors.

Black Baseball Players

Athletes of African descent who have participated professionally in baseball leagues, highlighting their contribution to the sport's history.