Which of the Following Decreases Aggregate Demand and Shifts the AD

question 119

Multiple Choice

Which of the following decreases aggregate demand and shifts the AD curve leftward?

• A)a tax cut
• B)an interest rate hike
• C)an increase in quantity of money
• D)an increase in government expenditures on goods and services
• E)a decrease in potential GDP

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Definitions:

Foreign Exchange

Foreign Exchange involves the trading of one currency for another, often conducted in the global foreign exchange market.

Demand Curve

A visual chart that illustrates the connection between a product's price and the amount of it consumers want to buy.

Currency Value

The worth of one country's currency in terms of another currency or standard measure.

Speculators

Individuals or entities who attempt to profit from the anticipation of price movements in a market, often taking on risks in the process.