Which of the Following Would Cause Aggregate Demand to Decrease

question 269

Multiple Choice

Which of the following would cause aggregate demand to decrease?

• A) The government increases taxes on both business and personal income.
• B) A drop in the foreign exchange value of the dollar
• C) The Fed increases the amount of money in circulation.
• D) Businesses and households believe that the economy is headed for good times, so they begin to feel increased security about their jobs.

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Definitions:

Limited Period

A specific duration of time that has definite beginning and ending points.

Standard Of Care

The level of care and service provided by healthcare professionals that is considered acceptable and appropriate by peer professional judgment.

Professional Liability

The legal obligation of professionals to compensate for wrongful practices resulting in bodily harm or property damage.

Due Care

The effort made by an individual to avoid harm to another party, as would be expected of a reasonable person under similar circumstances.