Which of the following will decrease aggregate demand, thereby shifting the curve left?
A) The interest rate increases.
B) Consumers' expectations of future income increase.
C) Government spending increases.
D) Foreign countries increase their imports of domestic goods.

Question

Quizplus · Accepted Answer

An increase in the interest rate can decrease consumer spending and investment, leading to a decrease in aggregate demand.

Which of the Following Will Decrease Aggregate Demand, Thereby Shifting