Which of the following increases U.S. aggregate demand?
A)a lower price level, increasing citizen's real wealth
B)a lower price level, reducing interest rates
C)a lower price level, increasing exports and decreasing imports
D)an increase in Americans' expected future incomes

Question

Which of the following increases U.S. aggregate demand?
A)​a lower price level, increasing citizen's real wealth
B)​a lower price level, reducing interest rates
C)​a lower price level, increasing exports and decreasing imports
D)​an increase in Americans' expected future incomes

Quizplus · Accepted Answer

An increase in Americans' expected future incomes would lead to an increase in consumption spending, which is a component of aggregate demand. Choices A, B, and C all involve a lower price level, which would decrease the level of aggregate demand.

Which of the Following Increases U.S. Aggregate Demand