Which of the following would be most likely to cause a reduction in current aggregate demand in the United States?
A) increased fear of a recession
B) an increase in the expected rate of inflation
C) a sharp increase in the value of stocks owned by Americans
D) a rapid increase in the growth of income in Canada, Mexico, and Western Europe

Question

Quizplus · Accepted Answer

Increased fear of a recession would likely lead to reduced consumer and business spending, thereby decreasing aggregate demand.

Which of the Following Would Be Most Likely to Cause