A Decrease in Aggregate Demand Is Most Likely to Be

question 115

Multiple Choice

A decrease in aggregate demand is most likely to be caused by:

• A)an increase in the wealth of consumers.
• B)an increase in consumer confidence.
• C)an increase in interest rates for home mortgages.
• D)a decrease in tax rates on household income.

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Definitions:

Outward-Oriented Policies

Economic policies aimed at promoting international trade by reducing trade barriers and embracing globalization to stimulate economic growth.

Growth

The increase in the economic output and productivity of a country, measured by its Gross Domestic Product (GDP) over time.

Factors Of Production

The inputs used to produce goods and services

Property Rights

The ability of an individual to own and exercise control over scarce resources.