Which of the following will shift the aggregate demand curve to the left,ceteris paribus?
A)an increase in interest rates
B)an increase in disposable income
C)an increase in expected profits for firms
D)an increase in net exports

Question

Quizplus · Accepted Answer

An increase in interest rates would decrease borrowing and investment, leading to a decrease in consumer spending and investment. This would cause a lower level of aggregate demand, shifting the curve to the left. The other choices would cause an increase in aggregate demand and shift the curve to the right.

Which of the Following Will Shift the Aggregate Demand Curve