Which of the following shifts aggregate demand to the right? a. a decrease in the money...

Which of the following shifts aggregate demand to the right?

a.	a decrease in the money supply
b.	a decrease in net exports at every exchange rate
c.	a decrease in prices
d.	a decrease in taxes

Solutions

Expert Solution

Option D.

When the taxes fall, the consumption spending Increases within the economy.
This increases the amount of consumption by the people when the taxes are lower.
Aggregate demand will thus Increase when the level of consumption increases.
Hence this will shift the aggregate demand curve to the right.

Rahul Sunny answered 1 year ago

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