Which of These Would Cause an Increase in a Country's

question 229

Multiple Choice

Which of these 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:

Mood Contagion

The phenomenon where the emotional state of one person influences or is transferred to others around them, often unconsciously.

Cheerful

Exhibiting positivity and a disposition that is bright and pleasant, often encouraging happiness in others.

Directed

Being guided or managed towards a specific aim or objective, often involving leadership or instruction to achieve precise outcomes.

Emotions

The complex psychological states that arise as a response to internal or external events, influencing behavior and decision-making.