A(n) _____ in government spending, a _____ domestic currency, and _____ interest rates will shift the aggregate demand curve to the left.

Question

Quizplus · Accepted Answer

- A decrease in government spending means less money is being injected into the economy, which leads to a decrease in consumption and investment and a decrease in aggregate demand.
- A stronger domestic currency means that exports become more expensive, leading to a decrease in net exports and a decrease in aggregate demand.
- Higher interest rates make it more expensive for consumers and businesses to borrow money, leading to a decrease in consumption and investment and a decrease in aggregate demand.

A(n) _____ in Government Spending, a _____ Domestic Currency, and _____

A(n) ___ in Government Spending, a _ Domestic Currency, and ___