Which of the Following Decreases Aggregate Demand

question 41

Multiple Choice

Which of the following decreases aggregate demand?

• A) The government increases taxes on both business and personal income.
• B) Foreign incomes rise.
• C) The quantity of money in the economy increases.
• D) Households believe that the economy is headed for good times, with higher future incomes.

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Definitions:

CS

An abbreviation for conditioned stimulus, which in classical conditioning is a previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

US

Refers to the United States, a country located primarily in North America.

Contiguous

Adjacent or sharing a common border; physically touching or next to each other.

Fear Conditioning

A learning process where an individual associates a previously neutral stimulus with an aversive event, leading to the elicitation of a fear response to the neutral stimulus.