Which of the following would most likely reduce aggregate demand (shift the AD curve to the left)?
A) a reduced amount of excess capacity
B) increased government spending on military equipment
C) an appreciation of the U.S. dollar
D) increased consumer optimism regarding future economic conditions

Question

Quizplus · Accepted Answer

An appreciation of the U.S. dollar would make U.S. goods more expensive for foreigners, reducing exports and reducing net exports, which would decrease aggregate demand.

Which of the Following Would Most Likely Reduce Aggregate Demand