Which of the Following Events Would Most Likely Reduce Aggregate

question 131

Multiple Choice

Which of the following events would most likely reduce aggregate demand?

• A) a reduction in the amount of existing capital stock
• B) a reduction in business and personal tax rates
• C) an increase in expected returns on investment
• D) an increase in real interest rates

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Definitions:

Major Consequence

A significant outcome or result that follows an action, decision, or event, often having long-lasting effects.

Work Habits

A person’s characteristic approach to work, including such things as organization, priority setting, and handling of paperwork, e-mail, and intranets.

Preoccupied

Being absorbed in thought or engrossed in an activity to the extent of becoming unaware of one’s surroundings.

Unfinished Tasks

Tasks that have been started but not completed, often causing a mental or emotional burden due to the pending work that remains to be done.