Which of the following events causes an increase in aggregate demand?
A) decreasing wealth
B) falling interest rates
C) decrease in government spending
D) rising imports

Name: Which of the following events causes an increase in aggregate demand? A) decreasing wealth B) falling interest rates C) decrease in government spending D) rising imports
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Question

Quizplus · Accepted Answer

Falling interest rates make borrowing cheaper, encouraging spending and investment, which increases aggregate demand.

Which of the Following Events Causes an Increase in Aggregate