All of the following,except one,will cause a decrease in aggregate demand.Which is the exception?
A)An increase in the money supply.
B)An increase in taxes.
C)An increase in the price of capital goods.
D)An increase in the exchange rate of the Canadian dollar.

Question

Quizplus · Accepted Answer

An increase in the money supply typically leads to lower interest rates, which can stimulate spending and investment, thereby increasing aggregate demand. The other options generally lead to a decrease in aggregate demand through various mechanisms such as reducing disposable income, increasing production costs, or making exports more expensive and reducing foreign demand.

All of the Following,except One,will Cause a Decrease in Aggregate