Which of the following would be most likely to cause a reduction in current aggregate demand in the United States?
a. increased fear of a recession
b. an increase in the expected rate of inflation
c. a sharp increase in the value of stocks owned by Americans
d. a rapid increase in the growth of income in Canada, Mexico, and Western Europe
A
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Assuming price elasticity of demand is reported as an absolute value, a price elasticity of one indicates:
A. the percentage change in quantity demanded will equal the percentage change in price. B. the percentage change in quantity demanded will equal one. C. both the percentage change in price and quantity demanded must equal one. D. the percentage change in quantity demanded and the percentage change in price must sum to one.
The country that has recently been suffering from deflation is
A. the U.S. B. Japan. C. China. D. Canada.