Which of the following would increase aggregate demand?
A) a deficit in the government budget
B) an increase in taxes
C) an increase in government borrowing
D) a surplus in the government budget
E) a decrease in government spending

Question

Quizplus · Accepted Answer

A deficit in the government budget increases aggregate demand by increasing government spending or decreasing taxes, which puts more money into the hands of consumers and businesses.

Which of the Following Would Increase Aggregate Demand