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Retnec Retnec
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8 years ago
When government spending increases, the aggregate demand curve
A) shifts to the left because private spending is being crowded out.
B) shifts to the right because more output is being demanded at every price level.
C) shifts to the right because a reduction in the price level causes the interest rate to be reduced and thereby stimulates spending.
D) shifts to the left because the higher level of government spending raises the interest rate and lowers total spending.
E) does not shift.
Textbook 
Introduction to Economic Reasoning

Introduction to Economic Reasoning


Edition: 8th
Author:
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Retnec Author
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7 years ago
Smiling Face with Halo Nice!!
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