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Which of the Following Fiscal Policies Cause a Decrease in Aggregate

Question 1

Multiple Choice

Which of the following fiscal policies cause a decrease in aggregate expenditures?


A) An increase in transfer payments and an increase in government spending.
B) An increase in transfer payments and a decrease in taxes.
C) A decrease in taxes and an increase in government spending.
D) An increase in taxes and a decrease in government spending.

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