Which of the Following Would Cause the AD Curve to Shift

question 165

Multiple Choice

Which of the following would cause the AD curve to shift to the left?

• A)A decrease in the real rate of interest
• B)A decrease in the rate of inflation
• C)An increase in government purchases
• D)A decision by the Fed to decrease the nominal interest rate
• E)None of these

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Definitions:

Damages

Damages are a monetary sum awarded to a party in a lawsuit as compensation for injury or loss suffered due to the action or inaction of another.

Battery

A tortious act involving unlawful and nonconsensual contact with another person, resulting in harm or offense.

Tort of Intrusion

A legal wrong that occurs when someone intentionally intrudes upon the solitude or private affairs of another without permission, causing harm or distress.

Eavesdrops

The act of secretly listening to the private conversation of others without their consent.