Aggregate Demand Will NOT Increase When

question 129

Multiple Choice

Aggregate demand will NOT increase when:

• A) household wealth rises but prices are constant.
• B) government purchases of goods rise.
• C) the quantity of money increases.
• D) interest rates increase.

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Definitions:

Rights of First Refusal

A contractual right that gives its holder the option to enter a business transaction with the owner of something, before the owner is entitled to enter into that transaction with a third party.

Disaffirm

The legal right of a party to deny or reject the validity of a contract or agreement.

Trade

The exchange of goods, services, or both between parties, either within a country or between countries, often for money.

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A vehicle drive system where power is distributed to all four wheels simultaneously, enhancing traction.