Which of the following increases U.S.aggregate demand?
A)a lower price level, increasing citizen's real wealth
B)a lower price level, reducing interest rates
C)a lower price level, increasing exports and decreasing imports
D)an increase in Americans' expected future incomes
E)All of the above increase U.S. aggregate demand.

Question

Quizplus · Accepted Answer

An increase in Americans' expected future incomes boosts consumer confidence and spending, directly increasing aggregate demand. The other options describe effects of a lower price level, which do not directly increase aggregate demand.

Which of the Following Increases U.S.aggregate Demand