Under what circumstances does aggregate demand increase? Question content area bottom Part 1 Aggregate demand increases if expected future income, inflation, or profits _______. And aggregate demand increases if fiscal policy _______ government expenditure. A. increase; increases B. decrease; increases C. increase; decreases D. decrease; decreases Part 2 Aggregate demand increases if fiscal policy _______ taxes or _______ transfer payments. A. decreases; increases B. decreases; decreases C. increases; decreases D. increases; increases Part 3 Aggregate demand increases if monetary policy _______ the quantity of money and _______ interest rates. A. increases; increases B. increases; decreases C. decreases; increases D. decreases; decreases Part 4 Aggregate demand increases if the exchange rate _______ or foreign income _______. A. decreases; increases B. increases; decreases C. decreases; decreases D. increases; increases