The U.S. Aggregate Demand Curve Shifts Leftward If

question 245

Multiple Choice

The U.S. aggregate demand curve shifts leftward if

• A) the Federal Reserve hikes the interest rate and decreases the quantity of money.
• B) the economic conditions in Europe improve so that European incomes increase.
• C) there is a tax cut.
• D) the exchange rate falls.

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Definitions:

Ocean-floor Sediments

Deposits that cover the ocean floor, comprised of particles of organic and inorganic origin, such as sand, silt, and the remains of marine organisms.

Fossil Fuels

Natural fuels formed from the remains of living organisms over millions of years, including coal, oil, and natural gas.

Sedimentary Rocks

Rocks formed by the accumulation and consolidation of sediment, which can include minerals and organic matter, typically found in layered deposits.

Fractured Granitic

Describes granitic rock that has been broken or cracked, often by natural processes such as tectonic movement or weathering.