Which of the following events would most likely reduce aggregate demand?
A. A reduction in the amount of existing capital stock
B. A reduction in business and personal tax rates
C. An increase in expected returns on investment
D. An increase in real interest rates
D. An increase in real interest rates
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In a free market the quantity demanded will not exceed the quantity supplied of a resource, even if it is undergoing rapid depletion
a. True b. False Indicate whether the statement is true or false
Suppose that each of the seven dwarfs buys 4 mugs of ginger ale per week from Snow White's cafe, when the price per mug is $2 . If the seven dwarfs are the entire market demand for Snow White's ginger ale, then which of the following is the correct value for market quantity demanded of ginger ale at a price of $2?
a. 4 b. 8 c. 7 d. 28