Which of the Following Will Shift the Aggregate Demand Curve

question 56

Multiple Choice

Which of the following will shift the aggregate demand curve to the left,ceteris paribus?

• A)an increase in interest rates
• B)an increase in disposable income
• C)an increase in expected profits for firms
• D)an increase in net exports

---

Definitions:

Taxable Income

The portion of an individual's or corporation's income that is subject to taxes, determined by subtracting allowable deductions from gross income.

Deductions

Expenses that can be subtracted from gross income to determine taxable income, thereby potentially reducing the amount of taxes owed.

Exemptions

Provisions in tax law that allow taxpayers to reduce their taxable income, often for specific activities or investments.

Government Borrowing

The method by which a government finances its expenditure by issuing debt instruments, such as bonds.