(Figure: Aggregate Demand Shift) Which of these may be an explanation for the shift in aggregate demand from A to B?
A) Prices fall and increase real wealth.
B) Consumer confidence declines and consumption spending falls.
C) Goods and services become less competitive and exports fall.
D) Interest rates fall and boost investments.

Question

(Figure: Aggregate Demand Shift)  Which of these may be an explanation for the shift in aggregate demand from A to B?
A) Prices fall and increase real wealth. 
B) Consumer confidence declines and consumption spending falls. 
C) Goods and services become less competitive and exports fall. 
D) Interest rates fall and boost investments.

Quizplus · Accepted Answer

Interest rates fall and boost investments.

(Figure: Aggregate Demand Shift) Which of These May Be