Aggregate Demand Increases If

question 175

Multiple Choice

Aggregate demand increases if

• A) the government increases spending.
• B) the Fed sells government bonds.
• C) the government increases taxes.
• D) the Fed raises the discount rate.

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Definitions:

Logarithm

A logarithm is the power to which a number, called the base, must be raised to produce a given number.

Fraction

A numerical quantity that is not whole, representing a part of a whole.

Inverse Function

A function that reverses the effects of another function, such that the composition of the two functions yields the identity function.

Graph

A visual representation of data or mathematical functions on a coordinate plane.