Question

An increase in ________ can be expected to shift the aggregate demand curve to the right....

An increase in ________ can be expected to shift the aggregate demand curve to the right.

taxes

the price of oil

expected future income

interest rates

the exchange rate value of the dollar

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Option 3

expected future income

the increase in the expected future income increases consumption in the economy which increases aggregate demand and shifts it to the right.

taxes increase shifts it to the left

the price of oil increase is a movement along the curve

interest rate increase decreases consumption and investment spending which decreases AD and shifts left

the increase in the exchange rate value of the dollar decreases export and decreases AD shifts to left.

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