What Happens to Aggregate Demand If People Want to Save

question 219

Multiple Choice

What happens to aggregate demand if people want to save more for retirement and the government raises taxes?

• A) Aggregate demand shifts right.
• B) Aggregate demand shifts left.
• C) If people save more, aggregate demand shifts right; if the government raises taxes, aggregate demand shifts left.
• D) If people save more, aggregate demand shifts left; if the government raises taxes, aggregate demand shifts right.

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Definitions:

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Disturbances or problems that interrupt an event, activity, or process, often leading to the requirement for adjustment or a response.

Illegal Behavior

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A method of addressing issues as they occur, rather than anticipating and planning for potential problems.

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