If the Naval Research Laboratory Fired a Chemist and the Environmental

question 1

Multiple Choice

If the Naval Research Laboratory fired a chemist and the Environmental Protection Agency hired her at the same salary,the net effect of these events would cause _____ in aggregate demand.

• A)an increase
• B)a decrease
• C)no change

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Definitions:

Debt Securities

Debt securities are financial instruments representing a loan made by an investor to a borrower, typically offering regular interest payments and the return of principal at maturity.

Stock Securities

Financial instruments that represent ownership shares in a corporation, entitling the holder to a portion of its assets and earnings.

Available-For-Sale Securities

Financial assets that are neither held for trading purposes nor intended to be held to maturity, which can be sold in the short-term.

Trading Securities

Financial instruments bought and held primarily for selling them in the near term to profit from short-term price fluctuations.