Question: An increase in government purchases, combined with a decrease in investment, would have what effect on aggregate demand? a. AD would increase. b. AD would

An increase in government purchases, combined with a decrease in investment, would have what effect on aggregate demand?

a. AD would increase.

b. AD would decrease.

c. AD would stay the same.

d. AD could either increase or decrease, depending on which change was of greater magnitude.

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