Which Combination of Factors Would Most Likely Increase Aggregate Demand

question 1

Multiple Choice

Which combination of factors would most likely increase aggregate demand?

• A) An increase in household indebtedness and a decrease in net exports
• B) An increase in consumer wealth and a decrease in interest rates
• C) An increase in personal taxes and a decrease in government spending
• D) An increase in business taxes and a decrease in profit expectations

---

Definitions:

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation.

Pesticide-Free

Refers to products, especially agricultural goods, that are grown or produced without the use of chemical pesticides.

Scientific Experimentation

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions, typically involving controlled conditions to test hypotheses.

Hypothesis

An initial explanation proposed with limited proof intended for further examination and study.