A simultaneous $10 million increase in both taxes and government spending will have no net effect on aggregate demand.

Name: A simultaneous $10 million increase in both taxes and government spending will have no net effect on aggregate demand.
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An increase in government spending directly raises aggregate demand, while an increase in taxes reduces disposable income and thus consumption, but the net effect depends on the marginal propensity to consume and the multiplier effect.

A Simultaneous $10 Million Increase in Both Taxes and Government