Which of the Following Will Shift the Aggregate Demand Curve

question 43

Multiple Choice

Which of the following will shift the aggregate demand curve to the right?

• A) Income taxes are raised.
• B) The government reduces purchases to balance the budget.
• C) Consumers become pessimistic about the future.
• D) A new technology is developed that will increase profits.
• E) Foreign economies fall into recession,reducing their demand for domestic exports.

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Definitions:

Indifferent

A state of having no preference or being neutral between two or more options as they provide the same level of utility or satisfaction.

Prizes

Awards or rewards given for a specific achievement, often used as incentives in competitions or contests.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount loaned, paid to the lender at regular intervals for the use of their money.

Bond Prices

The market value of a bond, which can fluctuate based on interest rates, the bond’s credit quality, and other factors.