(Figure: Predicting Aggregate Demand Shifts) Which of These Would Shift

question 33

Multiple Choice

(Figure: Predicting Aggregate Demand Shifts) Which of these would shift the aggregate demand curve from AD₁ to AD₂?

• A) a decrease in taxes
• B) an increase in interest rates
• C) an increase in government purchases
• D) an improvement in consumer expectations about the future

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Definitions:

Annual Percentage Rate

A measure of the cost of borrowing, including interest and other fees, represented as a yearly rate and providing a comprehensive view of the loan cost.

Terms Of Sale

The conditions agreed upon by the buyer and seller covering payment, delivery, and the transfer of ownership of goods or services.

Credit

Credit refers to the trust which allows one party to provide resources to another party wherein the second party does not reimburse the first party immediately, but promises either to repay or return those resources at a later date.

Net 45

A payment term indicating that the full payment is due 45 days after the invoice date.