What Happens to Aggregate Demand If People Want to Save

question 219

Multiple Choice

What happens to aggregate demand if people want to save more for retirement and the government raises taxes?

• A) Aggregate demand shifts right.
• B) Aggregate demand shifts left.
• C) If people save more, aggregate demand shifts right; if the government raises taxes, aggregate demand shifts left.
• D) If people save more, aggregate demand shifts left; if the government raises taxes, aggregate demand shifts right.