Which statement is NOT correct?

All the following statements relate to an increase in government spending which is not accompanied by an increase in taxation.

Which statement is NOT correct?
A . The government’s budget deficit will increase
B . The aggregate demand curve will shift to the right
C . The initial change in government spending may lead to a larger impact upon the economy
D . An expansionary monetary policy is being pursued

Answer: D

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments