Which of the following would tend to cause an increase in aggregate demand?
A) a decrease in consumption
B) an increase in the trade deficit
C) a fall in investment.
D) an increase in government spending on goods and services
E) an increase in the price of oil

Question

Quizplus · Accepted Answer

An increase in government spending on goods and services directly increases aggregate demand by raising government consumption, which is a component of aggregate demand.

Which of the Following Would Tend to Cause an Increase