Aggregate demand increases when
A) foreign incomes fall.
B) the exchange rate rises.
C) interest rates rise.
D) None of the above answers is correct.

Name: Aggregate demand increases when A) foreign incomes fall. B) the exchange rate rises. C) interest rates rise. D) None of the above answers is correct.
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Question

Quizplus · Accepted Answer

None of the options listed would lead to an increase in aggregate demand. A fall in foreign incomes, a rise in the exchange rate, and a rise in interest rates typically decrease aggregate demand.

Aggregate Demand Increases When