A Reduction in Government Transfers _____, Therefore Shifting the Aggregate

question 36

Multiple Choice

A reduction in government transfers _____, therefore shifting the aggregate demand curve to the _____.

• A) increases labor costs to companies, increasing investment; left
• B) decreases government purchases of goods and services, decreasing consumption; right
• C) increases the marginal propensity to save, decreasing consumption; right
• D) decreases disposable income and consumption; left

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