All of the following factors except one will cause the aggregate expenditure function to graphically shift upward.Which is the exception?
A)An increase in the age of the stock of consumer durable goods in the possession of consumers.
B)The expectation of a future decline in the consumer price index.
C)A big increase in the stock market index.
D)The expectation of an economic boom in the near future.

Question

Quizplus · Accepted Answer

An expectation of a future decline in the consumer price index would likely cause consumers to delay spending in anticipation of lower prices, which does not lead to an upward shift in the aggregate expenditure function.

All of the Following Factors Except One Will Cause the Aggregate