Which of the following does not account for a movement along a given AD curve?
A)The wealth effect
B)The interest rate effect
C)The real-balance effect
D)The international trade effect
E)The government spending effect

Question

Quizplus · Accepted Answer

The government spending effect would cause a shift in the AD curve, not a movement along it. The other options all describe factors that would cause a movement along the same AD curve.

Which of the Following Does Not Account for a Movement