If there is an increase in expected future income,then
A)the aggregate demand curve shifts rightward.
B)the aggregate demand curve shifts leftward.
C)there is an upward movement along the aggregate demand curve.
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 lead to an increase in consumer spending, which in turn will shift the aggregate demand curve to the right.

If There Is an Increase in Expected Future Income,then