Suppose the government decides to increase taxes by, Ask an Expert

Economics

Suppose the government decides to increase taxes by $50billion and to increase transfer payments by $50 billion. What effect would there be on aggregate demand?

A No impact

B $50 billion increase

C More than $50 billion increase after the multiplier effect

D $50 billion decrease

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9280656

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