Recently,Americans have been increasing their debt.This is an example of:
A)a negative aggregate demand shock.
B)a positive aggregate demand shock.
C)a rightward movement along the IS curve.
D)a positive aggregate supply shock.
E)Not enough information is given.

Question

Quizplus · Accepted Answer

An increase in consumer debt means that people are willing and able to spend more money, which will increase aggregate demand. Therefore, this is a positive aggregate demand shock.

Recently,Americans Have Been Increasing Their Debt