Which of the following would cause a rightward shift of the aggregate demand curve?
A)an increase in planned investment
B)a drop in the price level
C)a rise in the price level
D)a decrease in autonomous consumption
E)anything that causes an upward shift in the saving function

Question

Quizplus · Accepted Answer

An increase in planned investment increases aggregate demand, therefore causing a rightward shift of the aggregate demand curve.

Answer: E 
 Anything that causes an upward shift in the saving function would increase disposable income and consumption, thereby increasing aggregate demand and causing a rightward shift of the aggregate demand curve. However, this choice is not always true, as it depends on the specific factors causing the upward shift in the saving function.

Which of the Following Would Cause a Rightward Shift of the Aggregate