A Reduction in Business Expectations, Combined with the Imposition of New

Multiple Choice

A reduction in business expectations, combined with the imposition of new tariffs by major trading partners, would have what effect on aggregate demand?

A) ​AD would increase.
B) ​AD would decrease.
C) ​AD would stay the same.
D) ​AD could either increase or decrease, depending on which change was of a greater magnitude.