Which of the following shifts aggregate demand to the left?
A)an increase in exports
B)a decrease in taxes
C)an increase in imports
D)a decrease in interest rates

Question

Quizplus · Accepted Answer

An increase in imports means that more of the spending is going out of the country, which decreases the overall spending within the country, shifting aggregate demand to the left. Choices A and D both increase spending within the country and choice B decreases the tax burden and increases disposable income, both of which increase spending, shifting aggregate demand to the right.

Which of the Following Shifts Aggregate Demand to the Left