Which of the following is most likely to lead to an inward shift of the aggregate demand curve?
A)A decrease in the prices of raw materials
B)A decline in foreign price levels
C)A decline in the domestic price level
D)An optimistic expectation about the economy's performance in the near future
E)A decrease in foreign income

Question

Quizplus · Accepted Answer

A decrease in foreign income would likely reduce the demand for a country's exports, leading to a decrease in aggregate demand, thus causing an inward shift of the aggregate demand curve.

Which of the Following Is Most Likely to Lead to an Inward