What Happens to Aggregate Demand If People Want to Save

question 219

Multiple Choice

What happens to aggregate demand if people want to save more for retirement and the government raises taxes?

• A) Aggregate demand shifts right.
• B) Aggregate demand shifts left.
• C) If people save more, aggregate demand shifts right; if the government raises taxes, aggregate demand shifts left.
• D) If people save more, aggregate demand shifts left; if the government raises taxes, aggregate demand shifts right.

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Definitions:

Planned Change Process

A systematic approach aimed at transforming existing methods or conditions into desired ones through specific steps and strategies.

Measurable Objective

A specific, quantifiable, and time-bound goal that can be used to evaluate progress or success in achieving defined outcomes.

Program Development

The process of creating, designing, implementing, and evaluating a structured set of activities or procedures to achieve specific goals.

Financial Resources

Financial resources are monetary assets and funds available to an individual, organization, or government for spending, investing, and meeting obligations.