Suppose Aggregate Demand Shifts to the Left and Policymakers Want

question 3

Multiple Choice

Suppose aggregate demand shifts to the left and policymakers want to stabilize output.What can they do?

• A)repeal an investment tax credit or increase the money supply
• B)repeal an investment tax credit or decrease the money supply
• C)institute an investment tax credit or increase the money supply
• D)institute an investment tax credit or decrease the money supply

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Definitions:

Capital

Financial assets or the value of assets owned by a business, used in producing goods or services or invested to generate income.