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Author Question: Identify factors that would cause consumption spending to increase. What effect would that have on ... (Read 41 times)

newbem

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on: Jun 30, 2018
Identify factors that would cause consumption spending to increase. What effect would that have on aggregate demand?

Question 2

Which of the following is a transactions account?
 a. Currency
  b. Travelers' checks
  c. A savings account
  d. A credit card balance
  e. A demand deposit


xoxo123

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Reply #1 on: Jun 30, 2018
Answer to Question 1

The factors that cause consumption to increase include lower income taxes, a rise in consumer confidence, and a greater stock market wealth. These would have the effect of shifting the aggregate demand curve to the right (an increase.)

Answer to Question 2

e


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