Which of the Following Would Likely Cause an Upward Parallel

question 114

Multiple Choice

Which of the following would likely cause an upward parallel shift in the AE curve and a rightward shift in the AD curve?

• A)an increase in the business confidence of firms
• B)a reduction in government purchases
• C)an increase in the MPC
• D)a decrease in the price level
• E)an increase in the price level

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Definitions:

Debt Offerings

The issuance of bonds or other borrowing instruments by entities to raise capital.

Indenture Agreement

A formal contract or document between two parties, often used in bond agreements to specify the terms.

Overallotment Option

An underwriting provision that permits syndicate members to purchase additional shares at the original offering price.