Financial Planner

Category - General Principles of Financial Planning

The aggregate quantity of raw and manufactured goods demanded by consumers increases when the:
  1. personal consumption increases
  2. government spending decreases
  3. foreign investment decreases
  4. interest rates remain the same
Explanation
Answer: A - The aggregate quantity of goods demanded by consumers increases when personal consumption increases.
Key Takeaway: The aggregate demand curve is influenced by a number of factors that include personal consumption, government spending, investment, and trade. As personal consumption increases, the aggregate quantity of raw and manufactured goods demanded by consumers also increases.
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