Which of the Following Would Be Most Likely to Cause

question 130

Multiple Choice

Which of the following would be most likely to cause an increase in current aggregate demand in the United States?

• A) increased fear that the U.S. economy was going into a recession
• B) an increase in the real interest rate
• C) a reduction in the expected rate of inflation
• D) rapid growth of real income in Canada and Western Europe

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Definitions:

Net Income

The remaining profit of a company after all necessary subtractions, such as taxes and expenses, from its revenue.

Net Income

A company's remaining earnings after deducting all taxes and costs from the complete revenue.

Income Splitting

A tax strategy used to transfer income from a higher-tax-rate taxpayer to a lower-tax-rate taxpayer to reduce the total tax paid.

Salary Allowances

Additional monetary benefits provided to employees on top of their regular salary, potentially for specific purposes or expenses.