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Which of the following changes would probably not lead to an increase in aggregate expenditure? Select one: a. an increased mood of optimism about the nation’s economic prospects b. a decrease in the income tax rate c. an increase in the value of corporate stocks d. an increase in the interest rate e. an increase in aggregate wage income

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Which of the following changes would probably not lead to an increase in aggregate expenditure?
Select one:
a. an increased mood of optimism about the nation’s economic prospects
b. a decrease in the income tax rate
c. an increase in the value of corporate stocks
d. an increase in the interest rate
e. an increase in aggregate wage income

✅ Answers (1)

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  • Which of the following changes would probably not lead to an increase in aggregate expenditure?
    d. an increase in the interest rate

High interest rates increases the overall expense of borrowing, which in turn reduces the expenditures

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Answered on June 24, 2020 3:06 pm

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