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2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts

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Question 48

All other things being equal, which one of the following is most likely to lead to an increase in aggregate demand?

An increase in

direct taxation on domestic households

the exchange rate value of the national currency

the marginal propensity to import

investment by private sector businesses

2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts Questions

  1. A Level
  2. /Economics
  3. /2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts