The first term that will lead to a shift in the aggregate demand curve is C

The first term that will lead to a shift in the aggregate demand curve is C

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The first term that will lead to a shift in the aggregate demand curve is C(Y - T). This  term states that consumption is a function of disposable income. If disposable income  decreases, consumption will also decrease. There are many ways that consumption can  decrease. An increase in taxes would have this effect. Similarly, a decrease in income-- holding taxes stable--would also have this effect. Finally, a decrease in the marginal  propensity to consume or an increase in the savings rate would also decrease  consumption.  The second term that will lead to a shift in the aggregate demand curve is I(r). This term  states that investment is a function of the interest rate. If the interest rate increases,  investment falls as the cost of investment rises. There are a number of ways that  investment can fall. If the interest rate rises, say due to contractionary monetary or fiscal 
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