All of the following,except one,will shift the aggregate the demand to the right.Which is the exception?
A)Increase in wealth.
B)Increase in the rate of interest.
C)Increase in income levels abroad.
D)Increase in business expectations.
E)Decrease government regulations.

Question

Quizplus · Accepted Answer

An increase in the rate of interest will increase the cost of borrowing and decrease consumer and business spending, leading to a decrease in aggregate demand. The other options will increase consumer and business spending, and thus shift aggregate demand to the right.

All of the Following,except One,will Shift the Aggregate the Demand