Everything else held constant,aggregate demand increases when
A)net exports decrease.
B)taxes increase.
C)planned investment spending increases.
D)the money supply decreases.

Question

Quizplus · Accepted Answer

When planned investment spending increases, it leads to an increase in aggregate demand as businesses are increasing their output and contributing to overall economic growth.

Answer: A, D 
 A decrease in net exports would lead to an increase in aggregate demand, as there would be an increase in demand for domestically produced goods due to a decrease in imported goods. Similarly, a decrease in the money supply would lead to an increase in aggregate demand, as consumers and businesses would have less money to spend, and therefore would be more likely to spend it on goods and services, contributing to an overall increase in demand.  However, the question asks for a choice where everything else is held constant, so in reality, other factors may change as well, which could affect the overall impact.

Everything Else Held Constant,aggregate Demand Increases When