Which combination of factors would most likely increase aggregate demand?
A. An increase in household indebtedness and a decrease in foreign demand for products.
B. An increase in personal taxes and a decrease in government spending.
C. An increase in consumer wealth and a decrease in interest rates.
D. An increase in business taxes and a decrease in profit expectations.
Answer: C
You might also like to view...
The existence of unemployment can be illustrated on a production possibilities curve by a(n)
A. point below or inside the surface of the curve. B. inward shift of the curve. C. movement along the curve. D. outward shift of the curve.
The ratio of the change in consumption to the change in disposable income is the
A) average propensity to save. B) marginal propensity to consume. C) average propensity to consume. D) marginal propensity to save.
The purpose of a cartel is to:
a. promote product innovation. b. increase market competition. c. act like a monopoly. d. diversify operations. e. decrease market concentration.
The quantity equation states that the
A) money supply divided by the velocity of money equals the price level divided by real output. B) money supply times the velocity of money equals the price level times real output. C) money supply times the price level equals real output divided by the velocity of money. D) money supply times the price level equals real output times the velocity of money.