Which of the following decreases 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)None of the above decrease U.S. aggregate demand.

Question

Quizplus · Accepted Answer

A lower price level generally increases aggregate demand by increasing real wealth, reducing interest rates, and boosting exports. An increase in expected future incomes also increases aggregate demand. Therefore, none of the options decrease aggregate demand.

Which of the Following Decreases U.S.aggregate Demand