Which of the following is likely to lead to a decrease in aggregate demand?
A)a decrease in interest rates
B)a decrease in national income
C)an increase in national income
D)an increase in government spending on goods and services.

Question

Quizplus · Accepted Answer

A decrease in national income indicates a decrease in the purchasing power of consumers, leading to a decrease in aggregate demand. A decrease in interest rates, an increase in national income, and an increase in government spending would typically lead to an increase in aggregate demand.

Which of the Following Is Likely to Lead to a Decrease