Which of the following will most likely increase aggregate demand?
A) a decrease in stock market prices
B) an increase in business investment spending
C) a decrease in the expected inflation rate
D) a decrease in real GDP

Question

Quizplus · Accepted Answer

An increase in business investment spending will lead to an increase in aggregate demand as it increases the total amount of spending in the economy. Decreases in stock market prices and real GDP are likely to decrease aggregate demand, while a decrease in expected inflation may have a small positive effect, but not as significant as an increase in investment spending.

Which of the Following Will Most Likely Increase Aggregate Demand