Which of these statements best represents the law of demand?
a. When buyers' tastes for a good increase, they buy more of the good.
b. When the size of the consumer population rises, buyers purchase more of most goods.
c. When the price of a good decreases, buyers purchase more of the good.
d. Changes in preferences lead to changes in demand.
Question 2
Which of the following increases U.S. aggregate demand?
a. a lower price level, increasing citizen's real wealth
b. a lower price level, reducing interest rates
c. a lower price level, increasing exports and decreasing imports
d. an increase in Americans' expected future incomes
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