To Reduce Aggregate Demand, the Government May Reduce _____ or Increase

question 86

Short Answer

To reduce aggregate demand, the government may reduce _____ or increase _____.

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Definitions:

10-year Bonds

Long-term debt securities issued by entities that mature in ten years, paying interest to the holder at fixed intervals.

Interest Dates

Specific dates on which interest payments are due to be paid on a loan or bond.

Cash Paid

The total amount of cash outlay by a company during a specific period for expenses, acquisitions, or investments.

Semiannual Interest

The payment of interest on a loan or bond twice a year.