Which of the following will cause consumption and, as a result, aggregate demand to decrease?
A)A tax cut
B)A decrease in consumer confidence
C)An increase in population
D)An optimistic forecast of future income growth
E)A decrease in consumer debt

Question

Quizplus · Accepted Answer

A decrease in consumer confidence would lead to a decrease in consumption and thus a decrease in aggregate demand. The other options would either increase consumption (tax cut, optimistic income growth forecast, decrease in consumer debt) or not have a direct impact on consumption (increase in population).

Which of the Following Will Cause Consumption And, as a Result