If people begin to generally feel better about the future ________.
A)autonomous consumption should rise
B)autonomous investment should rise
C)the AD curve will shift to the right
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

If people are feeling better about the future, they are likely to increase their spending, both on consumption and investment. This will result in a rise in autonomous consumption and autonomous investment, which in turn will shift the AD (aggregate demand) curve to the right. Therefore, all three options (A, B, and C) are correct, making choice D the best answer.

If People Begin to Generally Feel Better About the Future