A Rise in Net Exports Shifts the Aggregate

question 31

Multiple Choice

A rise in net exports shifts the aggregate

• A)demand curve inward.
• B)demand curve outward.
• C)supply curve outward.
• D)supply curve inward.

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Definitions:

Time To Maturity

Time to maturity refers to the remaining time until a financial instrument, such as a bond or loan, reaches its scheduled end date and the principal must be repaid.

Zero-Coupon Bond

A bond that is sold at a discount to its face value and pays no interest before maturing, at which point its face value is repaid to the holder.

Discount Rate

The interest rate used to calculate the present value of future cash flows, representing the opportunity cost of capital.

Higher-Yield Bonds

Bonds that offer higher interest rates because they have lower credit ratings, indicating higher risk of default compared to more secure bonds.