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Which Set of Events Clearly Would Lead to a Decrease

Question 122
Multiple Choice
arrowQuestion 122arrow
Multiple Choice

Which set of events clearly would lead to a decrease in aggregate demand if the events occurred simultaneously?

A) Taxes are cut, giving the government less revenue while household debt levels rise.
B) Interest rates fall, giving savers less interest income while government spending on research is cut.
C) There is a strong expansion in the economy of the country's main trading partner at the same time that the country's currency appreciates.
D) Debt levels in the country rise at the same time that the country's currency appreciates.

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