Posted by: Pdfprep
Post Date: February 25, 2021
All the following statements relate to an increase in government spending which is not accompanied by an increase in taxation.
Which statement is NOT correct?
A . The government’s budget deficit will increase
B . The aggregate demand curve will shift to the right
C . The initial change in government spending may lead to a larger impact upon the economy
D . An expansionary monetary policy is being pursued
Answer: D
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