Aggregate demand shifts right when the government
A)decreases taxes.
B)cuts military expenditures.
C)repeals an investment tax credit.
D)None of the above is correct.

Name: Aggregate demand shifts right when the government A)decreases taxes. B)cuts military expenditures. C)repeals an investment tax credit. D)None of the above is correct.
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Question

Quizplus · Accepted Answer

Decreasing taxes puts more money in the hands of consumers and businesses, increasing their spending and therefore shifting aggregate demand right.

Aggregate Demand Shifts Right When the Government