Which of the following would cause an increase in a country's aggregate demand?
A) A rise in the country's stock market increases the value of stock held by people.
B) The country's inflation rate is lower than the inflation rates abroad among its trading partners.
C) The government raises taxes in the country.
D) The nominal interest rate falls as the country's price level falls.

Question

Quizplus · Accepted Answer

A rise in the stock market increases wealth, leading to higher consumer spending, which increases aggregate demand.

Which of the Following Would Cause an Increase in a Country's