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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Definitions:

Medicare

A federal health insurance program in the United States primarily for people aged 65 and older, as well as for some younger individuals with disabilities.

Immigrants

Individuals who move from one country to another, either temporarily or permanently, for various reasons such as employment, education, or safety, often facing legal, social, and economic adjustments.

United States

A country in North America consisting of 50 states, a federal district, five major self-governing territories, and various possessions, known for its strong economy, diverse culture, and influence on global affairs.

Entitlements

Government programs providing guaranteed benefits to a particular group, such as Social Security or Medicare.