Which of the Following Tends to Make Aggregate Demand Decrease

question 141

Multiple Choice

Which of the following tends to make aggregate demand decrease by more than the amount that consumer spending decreases?

• A) the crowding-out effect
• B) the multiplier effect
• C) the wealth effect
• D) the interest rate effect

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Definitions:

Organic Cause

A physical or biological reason for a symptom or condition, as opposed to a psychological or idiopathic cause.

Paralysis

The loss of the ability to move and sometimes to feel anything in part or most of the body, typically as a result of illness, poison, or injury.

DSM-IV

The fourth edition of the Diagnostic and Statistical Manual of Mental Disorders, a comprehensive classification of officially recognized psychiatric disorders, published by the American Psychiatric Association.

Mental Disorder

a broad category of conditions that affect mood, thinking, and behavior, significantly impacting daily living, relationships, and physical health.