Which of the following do not increase U.S.aggregate demand?
A)a lower price level, increasing citizen's real wealth
B)a lower price level, reducing interest rates
C)a lower price level, increasing exports and decreasing imports
D)All of the above increase U.S. aggregate demand.
E)None of the above increase U.S. aggregate demand.

Question

Quizplus · Accepted Answer

Lowering the price level increases the purchasing power of households and firms, thus increasing demand. However, reducing interest rates stimulates borrowing and consumption, increasing demand. Increasing exports and decreasing imports increase net exports and thus aggregate demand. Therefore, none of the given choices reduce aggregate demand.

Which of the Following Do Not Increase U