Which of the Following Would Cause an Increase in a Country's

question 121

Multiple Choice

Which of the following would cause an increase in a country's aggregate demand?

• A) A rise in the country's stock market increases the value of stock held by people.
• B) The country's inflation rate is lower than the inflation rates abroad among its trading partners.
• C) The government raises taxes in the country.
• D) The nominal interest rate falls as the country's price level falls.

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