Everything else held constant, which of the following does NOT cause aggregate demand to increase?
A) an increase in net exports
B) an increase in government spending
C) an increase in taxes
D) an increase in consumer optimism
C
You might also like to view...
Consumption, saving, and wealth all represent stock concepts because they are measured over a period of time
a. True b. False Indicate whether the statement is true or false
In Samoa the opportunity cost of producing 1 coconut is 4 pineapples, while in Guam the opportunity cost of producing 1 coconut is 5 pineapples. In this situation: a. if trade occurs, both countries will be able to consume beyond their original production possibilities frontiers. b. Guam will be better off if it exports coconuts and imports pineapples
c. both Samoa and Guam will be better off if Samoa produces both coconuts and pineapples. d. mutually beneficial trade cannot occur.