Which of the Following Decreases Aggregate Demand

question 41

Multiple Choice

Which of the following decreases aggregate demand?

• A) The government increases taxes on both business and personal income.
• B) Foreign incomes rise.
• C) The quantity of money in the economy increases.
• D) Households believe that the economy is headed for good times, with higher future incomes.

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Definitions:

Consumers

Individuals or groups who purchase goods and services for personal use.

Supported Corn Price

A predetermined price set by a government or other body to stabilize or support the market price of corn.

Surplus

An excess of supply over demand in a market, leading to lower prices, or a situation where income or revenue exceeds expenditures.

Corn Market

The corn market represents the global trade and economics surrounding the production, distribution, and consumption of corn.