Which of the Following Will Lead to an Increase in Aggregate

question 8

Multiple Choice

Which of the following will lead to an increase in aggregate demand in the United States?

• A) a higher price level
• B) an increase in the real interest rate
• C) an increase in wealth due to a substantial appreciation in the value of stocks
• D) a decrease in real income in Japan and Western Europe

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Definitions:

Social Reality

The construct of society as experienced and understood by individuals within that society.

Culture

encompasses the shared beliefs, customs, arts, institutions, and all other products of human work and thought characteristic of a community or population.

Attitudes

A settled way of thinking or feeling about something, often reflected in a person's behavior.

Reality

Pertains to the state of things as they actually exist, as opposed to an idealistic or notional idea of them.