If prices are constant, but the value of financial assets increases, aggregate _____ shifts to the _____.
A) supply; left
B) supply; right
C) demand; left
D) demand; right

Question

Quizplus · Accepted Answer

An increase in the value of financial assets increases consumers' wealth, leading to an increase in their ability to purchase goods and services. This leads to an increase in aggregate demand, shifting the demand curve to the right.

If Prices Are Constant, but the Value of Financial Assets