Which of the Following Best Describes Movement Along the AD

question 8

Multiple Choice

Which of the following best describes movement along the AD curve?

• A) A change in the inflation rate causes the central bank to change interest rates, thereby causing a corresponding proportional change in investment.
• B) A sudden increase in the tax rate.
• C) A change in monetary policy.
• D) A change in the inflation rate causes the federal government to reduce discretionary spending.
• E) A change in unemployment causes the federal government to reduce discretionary spending.

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