The increase in income generated by the additional government expenditure decreases the demand for money.
60) If the government spending increases without an equal increase in taxes, the government must borrow funds in the financial markets.
61) A decrease in the currency exchange rate would shift the aggregate demand curve rightward, resulting in a higher equilibrium income and price level in the long-run.
62) An increase in consumer wealth would shift the aggregate demand curve rightward.
63) A decrease in consumer confidence would shift the aggregate demand curve rightward.
64) A decrease in personal taxes would shift the aggregate demand curve rightward.
65) An open market purchase of government securities by the Fed would shift the aggregate demand curve leftward.
66) An open market sale, an increase in the discount rate, and an increase in the reserve requirement would shift the aggregate demand curve leftward.
67) An open market purchase, a decrease in the discount rate, and a decrease in the reserve requirement would shift the aggregate demand curve rightward.
68) Discretionary expenditures are federal government expenditures for programs whose funds are authorized and appropriated by Congress and signed by the President, where explicit decisions are made on the size of the programs.
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