Changes in Which of the Following Would Not Shift the Aggregate

question 220

Multiple Choice

Changes in which of the following would not shift the aggregate demand curve?

• A) productivity rates
• B) foreign-exchange rates
• C) real interest rates
• D) income tax rates

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Definitions:

Present Value

The current equivalent value of a future stream of payments or a single financial sum, using a specific return rate.

Annuity

An economic tool that delivers a stable flow of income to an individual, commonly employed in retirement planning strategies.

Discount Rate

The interest rate used to discount future cash flows to their present values, often reflecting the cost of capital or risk.

Perpetuity

A type of annuity that pays a fixed amount of money to an individual indefinitely, without a termination date.