Which one of the following combinations of macroeconomic changes is most likely to cause an increase in aggregate demand?
A decrease in the marginal propensity to save and an increase in government capital expenditure
An increase in the marginal propensity to import and a rise in the rate of interest
A fall in household wealth and a decrease in the rate of income tax
An appreciation of the exchange rate and a reduction in government capital spending
5 exam-style questions on Edexcel A A Level Economics 2.2.1 The characteristics of AD. Each one has a worked solution and a mark scheme showing where the marks go.