In Which of the Following Cases Does the Aggregate-Demand Curve

question 182

Multiple Choice

In which of the following cases does the aggregate-demand curve shift to the right?

• A)The price level rises,causing the interest rate to fall.
• B)The price level falls,causing the interest rate to fall.
• C)The money supply increases,causing the interest rate to fall.
• D)The money supply decreases,causing the interest rate to fall.

Understand the concepts of bond valuation and the calculation of carrying value over time.

Analyze the effects of market interest rates on bond prices and interest expenses.

Calculate interest expenses and premium or discount amortization for bonds.

Understand the characteristics and financial implications of floating-rate debt.

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