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:

Legislative Acts

Laws passed by a legislature or governing body that dictate codes of behavior, rights, and obligations.

Precedent

A legal decision or case that establishes a principle or rule that courts can adopt when deciding subsequent cases with similar issues or facts.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, aimed at standardizing practices across states.

Executive Branch

The part of a government responsible for implementing and enforcing laws, typically led by the president or a prime minister.