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 personal taxes and a decrease in government spending
D)an increase in business taxes and a decrease in profit expectations

Question

Quizplus · Accepted Answer

An increase in consumer wealth and a decrease in interest rates would likely increase aggregate demand, as consumers have more purchasing power and borrowing becomes cheaper, encouraging spending and investment.

Which Combination of Factors Would Most Likely Increase Aggregate Demand