Which of the following fiscal policies would shift the aggregate demand curve to the right?
A) Taxes are decreased.
B) Government purchases are decreased.
C) The Federal Reserve raises the discount rate.
D) The Federal Reserve sells bonds on the open market.

Question

Quizplus · Accepted Answer

Decreasing taxes increases consumers' disposable income, leading to higher spending and thus shifting the aggregate demand curve to the right.

Which of the Following Fiscal Policies Would Shift the Aggregate