Which of the following shifts aggregate demand to the right?
A) a decrease in the money supply
B) a decrease in net exports at every exchange rate
C) a decrease in prices
D) a decrease in imports

Question

Quizplus · Accepted Answer

A decrease in imports will increase consumption and investment in the domestic economy, leading to an increase in aggregate demand. The other choices would shift aggregate demand to the left as a decrease in the money supply would reduce spending, a decrease in net exports would reduce demand for domestic goods and services, and a decrease in prices would decrease spending and discourage investment.

Which of the Following Shifts Aggregate Demand to the Right