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A Decrease in Government Spending Shifts Aggregate Demand to the Left

question 35

True/False

A decrease in government spending shifts aggregate demand to the left.


Definitions:

Cash Payments

Outflows of cash to settle obligations or purchase assets.

Debit Balance

A condition where the sum of debits in an account exceeds the sum of credits.

Voucher System

An accounting system that involves a written authorization or record for any transaction that will result in a cash payment.

Cash Payments

Transactions that involve the immediate transfer of cash to settle a debt or purchase goods or services.

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