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

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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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Exploring Macroeconomics

ISBN: 9781111970314

5th Edition

Authors: Robert L. Sexton

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Question Posted: Oct 29, 2024 08:01 AM

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

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Exploring Macroeconomics

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