A change in _____ has the MOST direct effect on aggregate demand.
A) taxes
B) interest rates
C) the money supply
D) government spending

Name: A change in _____ has the MOST direct effect on aggregate demand. A) taxes B) interest rates C) the money supply D) government spending
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Question

Quizplus · Accepted Answer

Government spending directly affects aggregate demand as it is a component of the aggregate demand equation, increasing or decreasing total demand in the economy.

A Change in _____ Has the MOST Direct Effect on Aggregate