Everything else remaining the same, which one of the following increases aggregate demand?
A)an increase in taxes
B)an increase in transfer payments
C)a decrease in government spending
D)a decrease in the price level
E)a decrease in the quantity of money

Question

Quizplus · Accepted Answer

An increase in transfer payments puts more money into the hands of consumers, which can lead to an increase in consumption and thus increase aggregate demand.

Everything Else Remaining the Same, Which One of the Following