Any Change in the Price Level Will Result in a

question 15

Multiple Choice

Any change in the price level will result in a

• A) shift in the AE and AD curves in the same direction.
• B) shift in the AE curve and a movement along the AD curve.
• C) movement along the AE curve and a shift of the AD curve.
• D) shift in the AE and AD curves in opposite directions.

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Definitions:

Original Principal

The initial amount of debt or loan before any interest or fees are added; it is the base amount on which interest calculations are made.

Accrued Interest

Interest earned or owed that has not yet been paid or received.

Discounting

The process of determining the present value of a future amount of money or stream of cash flows given a specific rate.

Present Dollar

Present Dollar refers to the value of a sum of money in terms of its purchasing power at the current period, not adjusted for inflation or deflation over time.