Post Utme Ui 2018 Economics Question 15

Practice objective / multiple choice question 15 from the 2018 Post Utme Ui Economics examination.

Post Utme Ui 2018 Economics Objective / Multiple Choice
Question 15 POST_UTME_UI • 2018 • ECONOMICS • objective

The government of Nigeria is considering a fiscal policy to reduce inflation. If the government reduces government exp\enditure by 10% and increases taxes by 5%, what is the expected effect on the aggregate demand?

Answer Options

A. The aggregate demand increases
Correct Answer B. The aggregate demand decreases
C. The aggregate demand remains unchanged
D. The aggregate demand decreases in the short run but increases in the long run
Correct Answer
B
Correct Option:
The aggregate demand decreases

About This Question

This is Post Utme Ui 2018 Economics Question 15. It is one of the objective questions from the 2018 Post Utme Ui Economics examination.

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