Which of the Following Could Cause a Rightward Shift in the Aggregate

question 90

Multiple Choice

Which of the following could cause a rightward shift in the aggregate demand (AD) curve?

• A)an increase in induced imports
• B)an increase in desired investment
• C)an increase in the net tax rate
• D)an increase in desired saving
• E)an increase in the price level

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Definitions:

Premium

An amount paid for an insurance policy, or the price above the normal or nominal cost in financial transactions.

Discount

A reduction from the usual cost of something, often expressed as a percentage off the original price.

Convertible Bond

A financial instrument that allows the bondholder to convert the bond into a predetermined number of shares of common stock of the issuing company.

Market Value

The dollar amount required to replace the inventory as of the inventory date.