Which of the following enhance the expected returns on investment and thus increase aggregate demand?
Multiple choice question.
New and improved technology
An increase in excess capacity
An increase in corporate taxes
Higher interest rates
A lower price level
1 answer
The option that enhances the expected returns on investment and thus increases aggregate demand is:
New and improved technology
New technology can lead to increased productivity and innovation, which can raise expected returns on investments, thereby boosting aggregate demand.
