Which measure is NOT a channel through which the government can influence aggregate demand?
A) direct spending on goods and services
B) transfer payments to households and firms
C) taxes on households and firms
D) regulation on businesses

Question

Quizplus · Accepted Answer

While regulation on businesses can impact specific industries and markets, it is not necessarily a direct channel through which the government can influence aggregate demand. The other choices directly impact either consumption or investment, which can influence aggregate demand.

Which Measure Is NOT a Channel Through Which the Government