Which of the following will NOT cause consumption and,as a result,aggregate demand to increase?
A)a tax increase
B)an increase in consumer confidence
C)an optimistic business forecast of future income growth
D)a tax cut

Question

Quizplus · Accepted Answer

A tax increase would reduce disposable income and decrease consumption spending, leading to a decrease in aggregate demand. The other options would increase disposable income and/or encourage spending, thereby increasing aggregate demand.

Which of the Following Will NOT Cause Consumption And,as a Result,aggregate