An increase in aggregate demand can be caused by
A)an increase in government expenditures
B)an increase in nominal money supply
C)a decrease in taxes
D)an increase in business and consumer confidence
E)all of the above

Question

Quizplus · Accepted Answer

An increase in government expenditures (A), an increase in nominal money supply (B), a decrease in taxes (C), and an increase in business and consumer confidence (D) all can lead to an increase in aggregate demand. Therefore, the best choice is E, which includes all of the options listed.

An Increase in Aggregate Demand Can Be Caused by