17 of 25 If the federal government increases govemment spending to increase aggregate demand and does so by increasing the tax rates imposed on consumers and firms, which causes consumption spending and investment to decrease, this is known as O the crowding out effect. O implementation lag O legislative lag. O excise tax.

Brief Principles of Macroeconomics (MindTap Course List)
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Chapter16: The Influence Of Monetary And Fiscal Policy On Aggregate Demand
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O 12.4%; 2.9%
17 of 25
If the federal government increases govemment spending to increase aggregate demand and does so by increasing the tax rates imposed on consumers and firms, which causes consumption spending and investment to decrease, this is known as
O the crowding out effect.
O implementation lag.
O legislative lag
O excise tax
18 of 25
An increase in the aggregate demand curve would occur due to the following
Transcribed Image Text:O 12.4%; 2.9% 17 of 25 If the federal government increases govemment spending to increase aggregate demand and does so by increasing the tax rates imposed on consumers and firms, which causes consumption spending and investment to decrease, this is known as O the crowding out effect. O implementation lag. O legislative lag O excise tax 18 of 25 An increase in the aggregate demand curve would occur due to the following
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