If consumers suddenly became more optimistic ________.
A)they would spend more at any given inflation rate
B)planned expenditures would decline
C)the aggregate demand curve would shift to the left
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

If consumers became more optimistic, they would be more willing to spend money, which would lead to an increase in planned expenditures and a shift to the right of the aggregate demand curve. Therefore, the correct choice is A, as both B and C are incorrect.

If Consumers Suddenly Became More Optimistic ________