In Which Case Can We Be Sure Aggregate Demand Shifts

question 130

Multiple Choice

In which case can we be sure aggregate demand shifts left overall?

• A)People want to save more for retirement and the Fed increases the money supply.
• B)People want to save more for retirement and the Fed decreases the money supply.
• C)People want to save less for retirement and the Fed increases the money supply.
• D)People want to save less for retirement and the Fed decreases the money supply.

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Definitions:

Permanent/Temporary

Categories of accounts in accounting, where permanent accounts carry their end-of-period balances into the next period, and temporary accounts are closed.

Deposits In Transit

Deposits that were made by customers of a bank but did not reach, or were not processed by, the bank before the preparation of the bank statement.

Bank Collections

The process of banks acting as intermediaries to collect and process payments, such as checks or drafts, on behalf of clients.

Credit Memorandum

A document issued by a seller to acknowledge a reduction in the amount that a buyer owes, often due to a return or refund.