Faster growth rates by a major trading partner, combined with an increase in stock market wealth, would have what effect on aggregate demand?
A)AD would increase.
B)AD would decrease.
C)AD would stay the same.
D)AD could either increase or decrease, depending on which change was of a greater magnitude.

Question

Faster growth rates by a major trading partner, combined with an increase in stock market wealth, would have what effect on aggregate demand?
A)​AD would increase.
B)​AD would decrease.
C)​AD would stay the same.
D)​AD could either increase or decrease, depending on which change was of a greater magnitude.

Quizplus · Accepted Answer

Faster growth rates and an increase in stock market wealth would both lead to an increase in consumer and business confidence and spending, which would in turn increase aggregate demand.

Faster Growth Rates by a Major Trading Partner, Combined with an Increase