Which of the following would cause aggregate demand to increase in a country's economy?
A) Pessimism and uncertainty about jobs and future income increase.
B) Taxes increase.
C) Real interest rates increase.
D) The value of the country's currency depreciates.

Question

Quizplus · Accepted Answer

When the value of a country's currency depreciates, its goods and services become cheaper for foreigners, leading to an increase in exports. This increase in exports boosts the aggregate demand in the country's economy.

Which of the Following Would Cause Aggregate Demand to Increase