Which of the following fiscal policies would cause a decrease in aggregate expenditures?
A. An increase in transfer payments and an increase in government spending.
B. An increase in transfer payments and a decrease in taxes.
C. A decrease in taxes and an increase in government spending.
D. An increase in taxes and a decrease in government spending
Answer:D
Which of the following fiscal policies would cause a decrease in aggregate expenditures?
A. An increase in transfer payments and an increase in government spending. B. An increase in transfer payments and a decrease in taxes. C. A decrease in taxes and an increase in government spending. D. An increase in taxes and a decrease in government spending