Which of the Following Would Be Most Likely to Cause

question 51

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) sharp increase in the value of stocks owned by Americans
• D) a recession in Canada, Mexico, and Western Europe

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Definitions:

Bananas

Edible fruits from plants of the genus Musa, commonly enjoyed worldwide and known for their nutritional value.

Utility Function

A representation in economics of how consumers rank different bundles of goods based on the level of satisfaction or utility they provide.

Budget Constraint

An equation that represents all combinations of goods and services a consumer can afford, given their income and the prices of the goods.

Income

The financial gain earned or received over a period of time, typically through work, investments, or business ventures.