Economics · Macroeconomics
Which of the following government actions would directly lead to an increase in aggregate demand?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Increasing interest rates and keeping taxation the same
- 2Decreasing money supply and increasing interest rates
- 3Decreasing taxation and increasing government expenditure✓
- 4Increasing taxation and keeping government expenditure the same
Correct answer
Decreasing taxation and increasing government expenditure
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