If there is an increase in expected future income,then
A)the aggregate demand curve shifts rightward.
B)there is an upward movement along the aggregate demand curve.
C)the aggregate demand curve shifts leftward.
D)there is a downward movement along the aggregate demand curve.
E)the aggregate demand curve becomes steeper.

Question

Quizplus · Accepted Answer

An increase in expected future income will increase consumer confidence and their willingness to spend. This results in an increase in consumption expenditure, which leads to an increase in the aggregate demand for goods and services in the economy. Therefore, the aggregate demand curve will shift rightward.

If There Is an Increase in Expected Future Income,then