Which combination of factors would most likely increase aggregate demand?
A. An increase in business taxes and a decrease in profit expectations.
B. An increase in household indebtedness and a decrease in net exports.
C. An increase in net exports and a decrease in government spending.
D. An increase in consumer wealth and a decrease in interest rates.
Answer: D
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Which of the following is NOT a measure of the general level of prices?
A) Consumer Price Index B) Producer Price Index C) GDP Deflator D) Personal Sales Deflator Index
"The United States has more oil in Alaska than there is oil in Kuwait. Therefore, the United States should stop importing oil." Evaluate this statement using economic analysis
3 basic tools of monetary policy
What will be an ideal response?
Based on our understanding of the labor market model presented in Chapter 6, we know that an increase in the minimum wage will cause
A) an increase in the equilibrium real wage. B) a reduction in the equilibrium real wage. C) a reduction in the natural rate of unemployment. D) both B and C