Which Combination of Factors Would Most Likely Increase Aggregate Demand

question 199

Multiple Choice

Which combination of factors would most likely increase aggregate demand?

• A)an increase in household indebtedness and a decrease in net exports
• B)an increase in consumer wealth and a decrease in interest rates
• C)an increase in personal taxes and a decrease in government spending
• D)an increase in business taxes and a decrease in profit expectations

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Definitions:

Forest Industry

The sector involved in the management, conservation, harvesting, processing, and sales of forests and forestry products.

Decline

A decrease in the value or price of an asset or a reduction in the strength or quality of something.

Strip Bond

A financial instrument representing a portion of a debt security without periodic interest payments, where the investor receives the face value at maturity.

Maturity

The time when a financial instrument, such as a bond or loan, reaches its due date and is to be paid off.