An Increase in Aggregate Demand Causes an Increase in

question 187

Multiple Choice

An increase in aggregate demand causes an increase in

• A) income, which in turn induces an increase in consumption.
• B) investment, which in turn induces an increase in consumption.
• C) government, which in turn induces an increase in net exports.
• D) consumption, which in turn induces an increase in price.

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Definitions:

Gold Standard

A monetary system where a country's currency has a value directly linked to gold, allowing it to be freely converted into fixed amounts of gold.

International Currency

A currency that is used for international trade and investment, accepted across national borders.

U.S. Dollars

The official currency of the United States, widely used as a standard of exchange in international markets.

Depreciate

A decrease in the value of an asset over time.