Question: Which event causes a decrease in aggregate demand? a) increases in consumer confidence b) increases in taxes c) increases in government spending d) decreases in

Which event causes a decrease in aggregate demand?

a)

 increases in consumer confidence

b)

 increases in taxes

c)

 increases in government spending

d)

 decreases in interest rates

Which measure is an example of expansionary fiscal policy?

a)

 raising taxes

b)

 reducing welfare payments

c)

 increasing unemployment compensation

d)

 decreasing government spending

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