Practicing Success
When does the "Aggregate demand" rise in the economy? |
When people tend to spend more When there is an increase in the tax rate When RBI increases CRR, SLR. All of the above |
When people tend to spend more |
When there is increase in the spending of people on goods and services, it means there is rise in aggregate demand and vice versa. Increase in tax rate, CRR, SLR, will cause decrease of money supply in the economy, resulting in less money with the people and hence less spending. |