Which of the following would most likely shift the aggregate demand curve to the right?
A) An increase in stock prices that increases consumer wealth.
B) Increased fear that a recession will cause workers to lose their jobs.
C) An increase in personal income tax rates.
D) A reduction in household borrowing because of tighter lending practices.

Question

Quizplus · Accepted Answer

An increase in consumer wealth due to an increase in stock prices will lead to an increase in consumption spending, which will shift the aggregate demand curve to the right.

Which of the Following Would Most Likely Shift the Aggregate