Which of the following would most likely cause an increase in aggregate demand?
A) an increase in the corporate income tax
B) an increase in interest rates
C) an increase in the budget deficit
D) an increase in personal income tax rates

Question

Quizplus · Accepted Answer

An increase in the budget deficit can stimulate aggregate demand by increasing government spending on goods and services, which in turn, can increase demand for goods and services produced by the private sector.

Which of the Following Would Most Likely Cause an Increase