Which of the following events will NOT cause a rightward shift of the aggregate demand curve?

Question

Quizplus · Accepted Answer

If consumers expect a contraction (i.e. recession) is on the way, they will likely decrease their spending, leading to a decrease in aggregate demand and a leftward shift of the aggregate demand curve. The other options will cause an increase in aggregate demand and a rightward shift of the curve. An decrease in interest rates increases borrowing, leading to an increase in investment (part of AD). A depreciating dollar makes exports cheaper, causing an increase in net exports (part of AD). Government spending increases will lead to an increase in government expenditures (part of AD).

Which of the Following Events Will NOT Cause a Rightward