Relationship between aggregate spending and aggregate income

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Which of the following statements about the relationship between aggregate spending and aggregate income is true?

Aggregate income must exceed aggregate spending, or the economy will be in debt.

Aggregate spending must exceed aggregate income, or the economy will be in debt.

Aggregate income always equals aggregate spending.

The relationship between aggregate spending and aggregate income depends on how high the tax rate is.

Reference no: EM13987187

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