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28 January, 13:30

Which of the following would cause an increase in a country's aggregate demand?

a) The government raises taxes in the country.

b) The nominal interest rate falls as the country's price level falls.

c) A rise in the country's stock market increases the value of stock held by people.

d) The country's inflation rate is lower than the inflation rates abroad among its trading partners.

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Answers (2)
  1. 28 January, 13:54
    0
    B.) The nominal intrest rate falls as the country's price level falls.
  2. 28 January, 13:59
    0
    b) The nominal interest rate falls as the country's price level falls.
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