Which of the Following Decreases Aggregate Demand

question 312

Multiple Choice

Which of the following decreases aggregate demand?

• A) The quantity of money in the economy increases.
• B) Foreign incomes rise.
• C) The government increases taxes on both business and personal income.
• D) Households believe that the economy is headed for good times, with higher future incomes.

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Definitions:

Sociology

The study of society, social institutions, and social relationships, examining how humans interact and how these interactions shape cultures and social structures.

Axes

Refers to imaginary lines used to determine positions or movements in mathematical and physical contexts, or to various categories or dimensions used for analysis in social sciences.

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or social territory.

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods, involving widespread technological innovation.