The correct answer is (d) Decreasing government spending on education.
A decrease in government spending on education will reduce the overall level of government expenditure. This reduction in government spending will result in less aggregate demand (AD) in the economy, shifting the AD curve to the left. As a result, there will be lower overall demand for goods and services, leading to a decrease in inflationary pressures.
The other options mentioned do not directly lead to a leftward shift in the AD curve:
a) A decrease in stock market investments may affect wealth and consumer sentiment, but it does not directly impact government spending or aggregate demand.
b) Sending stimulus payments directly to households increases disposable income, which can boost consumer spending and aggregate demand, potentially shifting the AD curve to the right.
c) Decreasing household income taxes also increases disposable income, leading to higher consumer spending and potentially shifting the AD curve to the right.