Which of the following factors will NOT shift AD to the right?
A)an increase in foreign income
B)an increase in consumer optimism
C)a decrease in housing wealth
D)an increase in government spending

Question

Quizplus · Accepted Answer

A decrease in housing wealth typically leads to a decrease in consumer spending as people feel less wealthy and thus are less inclined to spend, which would shift the Aggregate Demand (AD) curve to the left, not to the right.

Which of the Following Factors Will NOT Shift AD to the Right