If there is an increase in expected future income, then
A)there is a downward movement along the aggregate demand curve.
B)there is an upward movement along the aggregate demand curve.
C)the aggregate demand curve becomes steeper.
D)the aggregate demand curve shifts leftward.
E)the aggregate demand curve shifts rightward.

Question

Quizplus · Accepted Answer

An increase in expected future income typically leads to higher current consumption, which increases aggregate demand, causing the aggregate demand curve to shift rightward.

If There Is an Increase in Expected Future Income, Then