Which event causes a decrease in aggregate demand?
A) increases in consumer confidence
B) increases in taxes
C) decreases in interest rates
D) increases in government spending

Name: Which event causes a decrease in aggregate demand? A) increases in consumer confidence B) increases in taxes C) decreases in interest rates D) increases in government spending
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Question

Quizplus · Accepted Answer

An increase in taxes will decrease disposable income, leading to less spending by consumers and a decrease in aggregate demand.

Which Event Causes a Decrease in Aggregate Demand