Which of the Following Would Cause Aggregate Demand to Decrease

question 269

Multiple Choice

Which of the following would cause aggregate demand to decrease?

• A) The government increases taxes on both business and personal income.
• B) A drop in the foreign exchange value of the dollar
• C) The Fed increases the amount of money in circulation.
• D) Businesses and households believe that the economy is headed for good times, so they begin to feel increased security about their jobs.

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Definitions:

Total Cost

The aggregate expense associated with producing or acquiring goods or services, including fixed and variable costs.

Expected Profit

The forecasted financial gain from a business activity, calculated as anticipated revenue minus expected costs.

Enrollment

The process of registering or signing up for membership, courses, services, or programs offered by organizations or institutions.

Cost to Provide

The total expenses incurred by a company to deliver a product or service to a customer.