If aggregate demand just decreased, which of the following may have caused the decrease?
A)a decrease in exports
B)a decrease in the interest rate
C)a decrease in the price level
D)a decrease in imports
E)a decrease in the income tax rate

Question

Quizplus · Accepted Answer

A decrease in exports would lead to a decrease in aggregate demand as there would be less demand for goods and services produced domestically. A decrease in the interest rate and income tax rate would lead to an increase in aggregate demand, while a decrease in the price level and imports would not necessarily result in a decrease in aggregate demand.

If Aggregate Demand Just Decreased, Which of the Following May