Which of the Following Tends to Make Aggregate Demand Decrease

question 141

Multiple Choice

Which of the following tends to make aggregate demand decrease by more than the amount that consumer spending decreases?

• A) the crowding-out effect
• B) the multiplier effect
• C) the wealth effect
• D) the interest rate effect

Calculate the rate of total return on an investment property.

Understand the impact of percentage increases and decreases on investment value.

Calculate the income yield from a rental property investment.

Understand and calculate capital gain yield on real estate investments.

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Definitions:

Contribution Margin

The sum of money left over after variable costs are subtracted, which is available to pay for fixed costs and add to profit.

Incremental Manufacturing Cost

The additional cost associated with producing one more unit of a product.

Direct Materials

Raw materials that are directly traceable and a major component of a finished product.

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, depreciation, and factory supplies, that are not directly traceable to a product.