An increase in aggregate demand is most likely to be caused by a decrease in:
A)the wealth of consumers.
B)consumer confidence.
C)business confidence.
D)the tax rates on household income.

Question

Quizplus · Accepted Answer

A decrease in tax rates on household income will lead to an increase in disposable income for consumers, which will lead to an increase in consumption expenditure and overall aggregate demand.

An Increase in Aggregate Demand Is Most Likely to Be