Which of the following does not cause an increase in aggregate demand?
A) an increase in society's wealth
B) a decrease in consumer indebtedness
C) a fall in the price level
D) a fall in interest rates
E) None of the above

Question

Quizplus · Accepted Answer

A fall in the price level does not cause an increase in aggregate demand; it is a consequence of shifts in the aggregate demand or supply curves. Increases in wealth, decreases in consumer indebtedness, and falls in interest rates all stimulate spending, thereby increasing aggregate demand.

Which of the Following Does Not Cause an Increase in Aggregate