Aggregate Demand Is Determined by Adding Up the Spending of

question 143

Multiple Choice

Aggregate demand is determined by adding up the spending of

• A) domestic consumers who buy goods and services produced in the United States.
• B) domestic consumers and firms that buy goods and services produced in the United States.
• C) domestic and foreign consumers who buy goods and services produced in the United States.
• D) domestic and foreign consumers and firms that buy goods and services produced in the United States.
• E) consumers,firms,the government,and foreigners that buy goods and services produced in the United States.

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Definitions:

Coupon Rate

A bond's annual yield rate, represented as a percentage of its par value.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, often expressed in years.

Par Value

The face value of a bond or the stock value stated in the corporate charter, often used in reference to bonds.

Immunization

A strategy used in fixed income to shield a portfolio from interest rate fluctuations by aligning the durations of assets and liabilities.