Which of the Following Increases Aggregate Demand and Shifts the AD

question 11

Multiple Choice

Which of the following increases aggregate demand and shifts the AD curve rightward?

• A)An increase in the quantity of money and a resulting fall in the interest rate
• B)An increase in the exchange rate that makes imports less expensive
• C)Predictions of a recession that lead to expectations of lower future income
• D)A fall in the price level

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Definitions:

Correlation

The degree to which events or characteristics vary along with each other.

Magnitude

The size, extent, or importance of something.

Correlation Coefficient

A numerical indicator that shows the degree to which multiple variables co-vary.

Negative Life Events

Significant adverse events or situations that can lead to stress and have potentially lasting impacts on an individual's mental health.