Which of the Following Will Increase Aggregate Demand in an Economy

question 29

Multiple Choice

Which of the following will increase aggregate demand in an economy?

• A)A recession forecasted by a group of economists
• B)A decrease in the minimum taxable income by the government
• C)An increase in consumer debt
• D)A decrease in the import quota on a popular consumer good
• E)An increase in the population in the economy

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Definitions:

Mercantilist Theory

An economic theory that emphasizes government regulation of international trade to generate wealth and strengthen national power, advocating for a positive balance of trade.

Mother Country

A term referring to the country of origin for settlers or colonizers of a territory, or more broadly, to a country considered as the origin in a colonial or ancestral relationship.

Raw Materials

Basic, unprocessed resources used in the production of goods and services, such as minerals, forest products, and agricultural items.

Indentured Servitude

A labor system where people paid for their passage to the New World by working for an employer for a fixed term of years.