Examlex
Along an aggregate demand curve, which of the following are held constant?
Market Rate
The prevailing interest rate available in the marketplace for loans or investments of similar risk and maturity.
Contractual Rate
The interest rate stated in a contract, such as in a loan agreement or bond indenture, determining the amount of interest payments.
Premium on Bonds Payable
The amount by which the sale price of a bond exceeds its face value, reflecting higher-than-market interest rates or increased demand for the bond.
Amortization
The process of spreading out a loan or intangible asset cost over a fixed period of time for accounting and tax purposes.
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