Exhibit 9-5 -Refer to Exhibit 9-5.Picture an AD Curve and an SRAS

question 112

Multiple Choice

Exhibit 9-5

-Refer to Exhibit 9-5.Picture an AD curve and an SRAS curve intersecting at Point I on graph (1) . Which point(s) would this correspond to on graph (2) ?

• A) A or B
• B) C
• C) D or E
• D) F
• E) G

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Definitions:

Dividend Reinvestment Plans

Programs that allow investors to automatically reinvest their cash dividends into additional shares or fractional shares of the underlying stock.

Open Market

A freely competitive market where buyers and sellers can engage in transactions with minimal government intervention.

Debt Ratio

A financial ratio that measures the extent of a company's or individual's leverage in relation to the assets they own.

Transaction Costs

Expenses incurred when buying or selling securities, including commissions and the bid-ask spread.