Which of the Following Would Cause an Increase in Aggregate

question 12

Multiple Choice

Which of the following would cause an increase in aggregate demand (AD) ?

• A) A decrease in price levels
• B) An increase in interest rates
• C) A decrease in taxes
• D) A rise in the foreign exchange value of the dollar

---

Definitions:

Higher Wages

Wages that are above the average or standard level, often resulting from increased demand for labor, higher productivity, or specialized skills.

Statistical Discrimination

The use of statistical or probabilistic data about demographic groups by employers, lenders, etc., to make assumptions about individuals, potentially leading to discriminatory practices.

Insurance Rates

The cost or premium for insurance coverage, determined by risk assessment and statistical analysis.