Which of the following shifts aggregate demand to the right?
A)an increase in the money supply
B)an increase in net exports due to something other than a change in domestic prices
C)an investment tax credit
D)All of the above are correct.

Question

Quizplus · Accepted Answer

An increase in the money supply (choice A) increases consumer and business spending, leading to an increase in aggregate demand. An increase in net exports due to something other than a change in domestic prices (choice B) means that foreign countries are buying more of our goods and services, increasing aggregate demand. An investment tax credit (choice C) encourages businesses to invest more, which also increases aggregate demand. Therefore, all three choices shift aggregate demand to the right.

Which of the Following Shifts Aggregate Demand to the Right