At a given price level,an increase in stock market wealth will shift the aggregate demand curve:
A)rightward.
B)leftward.
C)both.
D)none of the above.

Question

Quizplus · Accepted Answer

An increase in stock market wealth will make people feel richer and therefore increase their willingness to spend. This will lead to an increase in consumption expenditure and a shift of the aggregate demand curve to the right.

At a Given Price Level,an Increase in Stock Market Wealth