In the aggregate expenditures model, which of the following would cause the aggregate expenditures curve to increase?
A) Disposable income decreases.
B) Interest rates decrease.
C) Net exports decrease.
D) Government purchases decrease.

Question

Quizplus · Accepted Answer

A decrease in interest rates typically leads to an increase in investment and consumer spending, which shifts the aggregate expenditures curve upward.

In the Aggregate Expenditures Model, Which of the Following Would