Increases in deficit spending may be accompanied by
A)The U.S.Treasury buying more bonds.
B)An increase in U.S.exports.
C)A shift of the Aggregate supply curve to the right.
D)A shift of the Aggregate demand curve to the right.

Question

Quizplus · Accepted Answer

Increases in deficit spending can lead to a shift of the Aggregate demand curve to the right. This is because the government is spending more money, which can lead to an increase in overall consumption and investment. This can result in increased economic growth and inflation.

Increases in Deficit Spending May Be Accompanied by