Figure 33-11. -Refer to Figure 33-11.A Movement from P₁ and Y₂,to P₂

question 61

Multiple Choice

Figure 33-11.
-Refer to Figure 33-11.A movement from P₁ and Y₂,to P₂ and Y₁ would be consistent with

• A)a decrease in consumption expenditures.
• B)stagflation.
• C)sticky-wages.
• D)an increase in net exports.

---

Definitions:

Compounded Semiannually

Interest calculation method where interest is added to the principal sum twice a year, leading to interest on interest.

Strip Bond

A type of bond where both the principal and regular coupon payments have been separated and are sold individually.

Compounded Quarterly

A method where interest is calculated and added to the principal every three months.

Average Annual Rate

An average percentage that represents the compounded annual growth rate of an investment over a specified time frame.