Everything else held constant, an increase in government spending will cause
A) aggregate demand to increase.
B) aggregate demand to decrease.
C) the quantity of aggregate demand to increase.
D) the quantity of aggregate demand to decrease.
A
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In the complete algebraic formulation of ISLM,
A) the government spending multiplier is greater than the tax mulitplier as long as b <1. B) the government spending mulitplier is less than the tax multiplier as long as b<1. C) monetary policy is always more powerful than fiscal policy. D) fiscal policy is always more powerful than monetary policy.
Pension plans can be thought of as the opposite of life insurance because life insurance:
A. pays off when you die while the pension plan pays off if you don't. B. costs far more than pension plans. C. pools the savings of many and pension plans do not. D. companies spread risk while pension plans are only spread within the company.