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Which of the following would cause a decrease in aggregate demand?
 
a) increase in taxes
b) falling interest rates
c) increase in consumer spending
 

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Alice Sejake
Alice SejakeLv10
9 Oct 2020
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Related questions

Which of the following events causes a decrease in aggregate demand? 
 
(i) improvement in consumer confidence 
(ii) increase in government spending 
(iii) decrease in interest rates 
(iv) increase in taxes 

Which combination of factors would most likely increase aggregate demand? 

A. An increase in household indebtedness and a decrease in net exports.

B. An increase in consumer wealth and a decrease in interest rates.

C. An increase in ner exports and a decrease in government spending.

D. An increase in business taxes and a decrease in profit expectations.

Which of the following will not cause aggregate private spending to decrease?

a. An increase in government spending.

b. An increase in future taxes.

c. A decrease in expected future output.

d. A decrease in government spending.

e. An increase in expected future real interest rates.

 

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