A leftward shift in the aggregate demand (AD)curve could result from a rise in
A)autonomous exports.
B)autonomous government purchases.
C)government transfer payments to households.
D)desired investment.
E)autonomous desired savings.

Question

Quizplus · Accepted Answer

A rise in autonomous desired savings means households are saving more instead of spending, which reduces consumption and shifts the aggregate demand curve to the left.

A Leftward Shift in the Aggregate Demand (AD)curve Could Result