A Reduction in Government Transfers _____,Thereby Shifting the Aggregate Demand

question 304

Multiple Choice

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

• A) increases Canadian 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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The entitlement to receive a certain amount of money, typically as a result of a contract or agreement.

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