Which of the Following Increases Aggregate Demand and Shifts the AD

question 11

Multiple Choice

Which of the following increases aggregate demand and shifts the AD curve rightward?

• A)An increase in the quantity of money and a resulting fall in the interest rate
• B)An increase in the exchange rate that makes imports less expensive
• C)Predictions of a recession that lead to expectations of lower future income
• D)A fall in the price level

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Definitions:

Net Operating Income

The profit generated from a company's normal core business operations, excluding deductions of interest and taxes.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions and managing overall operations.