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

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Definitions:

Distraction

The process of diverting attention away from the intended object of focus towards something else, often leading to a decrease in performance or comprehension.

Deindividuation

A tendency to lose one’s sense of individuality when in a group or crowd.

High Cognitive Load

A situation where the task at hand requires a significant amount of mental effort and working memory, potentially affecting performance and decision-making.

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires.