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Digiron [165]
1 year ago
11

A decrease in transfer payments has the same basic effect on aggregate demand as?

Business
1 answer:
SashulF [63]1 year ago
8 0

A decrease in transfer payments has the same basic effect on aggregate demand as larger the marginal propensity to save.

<h3>What is aggregate demand?</h3>

Aggregate demand refers to the total amount of the money spent on the purchase of the commodity for the particular period of time. It includes the demand of the consumer goods, imports, and government spending.

When the change in the  transfer payments, it affects the consumption level of the individual, which results in the shift in the aggregate demand of the product.

Therefore, it can be concluded that A reduction in transfer payments has the same basic effect on aggregate demand as an increase in the marginal propensity to save.

Learn more about aggregate demand here:

brainly.com/question/24319248

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Has a government monopoly in home mail delivery, but several private companies, such as fedex, ups, and dhl, compete with:____.
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Has a government monopoly in home mail delivery, but several private companies, such as FedEx, ups, and DHL, compete with <u>USPS</u>.

The government affords public offerings just like the railways. subsequently, they are a monopolist due to the fact new companions or privately held groups aren't allowed to run railways. but, the fee of the tickets is affordable so most people can use public shipping.

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