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An Increase in Government Spending Leads to A(n)

Question 160

Multiple Choice

An increase in government spending leads to a(n)


A) downward shift of the aggregate expenditure line and a leftward shift of the money demand curve
B) upward shift of the aggregate expenditure line and a rightward shift of the money demand curve
C) downward shift of the aggregate expenditure line and a rightward shift of the money demand curve
D) upward shift of the aggregate expenditure line and a leftward shift of the money demand curve
E) upward shift of the aggregate expenditure line but no shift of the money demand curve

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