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:

Board Of Directors

consists of a group of elected individuals who represent shareholders' interests, overseeing and advising a company's management.

Bonds

Fixed income investment products that represent loans made by an investor to a borrower, typically corporate or governmental, which pay periodic interest payments.

Stocks

Shares of ownership in a company, giving shareholders a stake in the company's assets and earnings.

Dividend

A portion of a company's earnings distributed to shareholders, typically in the form of cash or additional stock.