A Decrease in U

question 151

Multiple Choice

A decrease in U.S.housing prices would tend to cause

• A) aggregate demand to decrease.
• B) long-run aggregate supply to increase.
• C) short-run aggregate supply to decrease.
• D) long-run aggregate supply to decrease.
• E) aggregate demand to increase.

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Definitions:

Changes In Financial Position

Alterations in a company's financial standing due to operations, financing, or investing activities.

Ten-Year Bond

A debt security with a maturity of ten years from the date of issue, which pays interest periodically.

Financing Activities

Transactions that involve raising capital, repaying investors, and adjusting the capital structure of a company, as reported in the cash flow statement.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not including cash equivalents.