Multiple Choice
Which of the following tends to make aggregate demand decrease by more than the amount that consumer spending decreases?
A) the crowding-out effect
B) the multiplier effect
C) the wealth effect
D) the interest rate effect
Correct Answer:

Verified
Correct Answer:
Verified
Q44: Decreased interest rates will shift the aggregate
Q84: According to the textbook, what brought the
Q112: According to the wealth effect, as prices
Q126: _ in wealth and _ in government
Q138: (Figure: Aggregate Demand Shift) <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7132/.jpg" alt="(Figure:
Q142: When aggregate prices rise, U.S. goods become
Q143: (Figure: Aggregate Demand Shift) <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7132/.jpg" alt="(Figure:
Q145: Which of the following would NOT cause
Q242: Short-run macroeconomic equilibrium occurs at the intersection
Q264: A decrease in foreign income will cause