A Rise in the Price Level That Leads to a Change

question 145

Multiple Choice

A rise in the price level that leads to a change in the interest rate,and therefore to a change in the quantity of aggregate demand,will cause

• A) an upward movement along the aggregate demand curve.
• B) a downward movement along the aggregate demand curve.
• C) a rightward shift of the aggregate demand curve.
• D) a leftward shift of the aggregate demand curve.
• E) no change in the quantity of aggregate demand.

Distinguish between different theories related to interest rates and term structure.

Recognize the significance of bond ratings and the factors influencing them.

Identify the features and benefits of inflation-indexed bonds.

Understand the operational mechanisms and purposes of different bond provisions.

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