Which of the following would most likely shift the aggregate demand curve to the right?
A) an increase in stock prices that increases consumer wealth
B) increased fear that a recession will cause workers to lose their jobs
C) an increase in personal income tax rates
D) a reduction in household borrowing because of tighter lending practices

Question

Quizplus · Accepted Answer

An increase in stock prices would increase consumer wealth, leading to an increase in consumption and investment spending, both components of aggregate demand.

Which of the Following Would Most Likely Shift the Aggregate