Which of the Following Will Cause a Negative Aggregate Demand

question 54

Multiple Choice

Which of the following will cause a negative aggregate demand shock?

• A)an increase in the price of raw materials
• B)a decrease in the domestic price level
• C)an increase in tax rates
• D)an increase in government expenditures
• E)an increase in the domestic price level

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Definitions:

Portfolio

A collection of various investments held by an individual, company, or financial institution.

Risky Bond Portfolio

A collection of bonds with higher default risk, which may offer higher yields in compensation for the increased risk of loss.

Standard Deviation

A statistical measure of the dispersion or variability of a set of values, representing how spread out the numbers are from the mean.

Correlation

A statistical measure that describes the extent to which two variables move in relation to each other, indicating the strength and direction of their relationship.