Changes in Aggregate Demand Can Be Caused by Changes in

question 143

Multiple Choice

Changes in aggregate demand can be caused by changes in
I. wages.
II. raw materials costs.
III. government spending.
IV. government regulations that increase the cost of doing business.

• A) I, II, III, and IV
• B) I and III only
• C) I, III, and IV
• D) III only

---

Definitions:

Cleanup Loan

A short-term loan used to clear outstanding debts, often as a way to improve financial metrics before seeking longer-term financing.

Bankers' Acceptance

A short-term debt instrument issued by a company but guaranteed by a bank, commonly used in international trade to facilitate transactions.

Letter of Credit

A document issued by a bank guaranteeing a buyer's payment to a seller within a specific timeframe and for a specific amount.

Cash Balances

The amount of cash or cash equivalents that a company or individual holds at a given time.