Which one of the following statements regarding the determinants of aggregate demand (ADADAD) is correct?
A rise in the general price level causes a rightward shift of the aggregate demand curve due to the wealth effect.
An increase in business confidence typically leads to a rise in planned capital investment, which shifts the aggregate demand curve to the right.
A decrease in the savings ratio, with constant disposable incomes, reduces short-run consumer expenditure and shifts the aggregate demand curve to the left.
An appreciation of the domestic currency increases the price competitiveness of exports, causing net exports to rise and shifting the aggregate demand curve to the right.
