Which of the Following Factors Will Cause the Aggregate Demand

question 130

Multiple Choice

Which of the following factors will cause the aggregate demand curve to shift to the right?

• A) reduction in the aggregate price level
• B) reduction in personal income taxes
• C) increase in interest rates
• D) decrease in foreign income

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Definitions:

Exchange

Exchange involves the act of trading goods, services, currencies, or other instruments between parties.

Impairment Losses

Financial losses recorded when an asset's market price drops below its book value.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its identifiable net assets, representing future economic benefits from assets not separately identified.

Reversed

In accounting, this refers to the action of undoing or negating a journal entry that was previously made, often because it was an error.