An increase in ________ can be expected to shift the aggregate demand curve to the right.
A) taxes
B) the price of oil
C) expected future income
D) interest rates
E) the exchange rate value of the dollar

Question

Quizplus · Accepted Answer

An increase in expected future income will boost consumer confidence and increase their willingness to spend, leading to an increase in consumption expenditure and a shift in the aggregate demand curve to the right.

Note: Option B, the price of oil, may have mixed effects on aggregate demand as it depends on whether the economy is a net importer or exporter of oil. Options A, D, and E are incorrect as an increase in these variables would lead to a decrease in aggregate demand.

An Increase in ________ Can Be Expected to Shift the Aggregate