Which of the following scenarios would likely cause the aggregate demand curve to shift to the left?
A) Interest rates increase.
B) Higher tariffs are placed on all imports into the United States.
C) Consumers gain greater confidence about the future.
D) All of these would likely cause the aggregate demand curve to shift to the left.

Question

Quizplus · Accepted Answer

An increase in interest rates typically reduces consumer and business spending, leading to a decrease in aggregate demand, thus shifting the curve to the left.

Which of the Following Scenarios Would Likely Cause the Aggregate