Which of the following is likely to lead to a decrease in aggregate demand?
A)a decrease in interest rates
B)an increase in income
C)an increase in imports
D)an increase in government spending on goods and services.

Question

Quizplus · Accepted Answer

An increase in imports means that consumers are purchasing more foreign goods and services, which reduces the demand for domestic goods and services and therefore leads to a decrease in aggregate demand.

Which of the Following Is Likely to Lead to a Decrease