Which one of the following factors will most likely cause an increase in aggregate demand?
A) an increase in the expected inflation rate
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 the expected inflation rate can lead consumers and businesses to spend more now rather than later, increasing aggregate demand.

Which One of the Following Factors Will Most Likely Cause