___________ government spending,___________ transfer payments,and ________ taxes all increase aggregate demand.

Question

Quizplus · Accepted Answer

This is because increasing government spending and transfer payments inject more money into the economy, increasing consumption and investment, thus increasing aggregate demand. However, increasing taxes takes money out of the economy, decreasing consumption and investment, thus decreasing aggregate demand.

___________ Government Spending,___________ Transfer Payments,and ________ Taxes All Increase Aggregate

_____ Government Spending,_ Transfer Payments,and ____ Taxes All Increase Aggregate