Which one of the following factors will most likely cause an increase in aggregate demand?
A) An increase in net exports.
B) An increase in the real interest rate.
C) A decrease in net exports due to falling incomes abroad.
D) A technological development that decreases the cost of producing computer chips.

Question

Quizplus · Accepted Answer

An increase in net exports leads to a higher demand for a country's goods and services from abroad, which in turn increases the aggregate demand within the country.

Which One of the Following Factors Will Most Likely Cause