Which of the Following Would Be Represented by a Positive

question 43

Multiple Choice

Which of the following would be represented by a positive value of the demand shock, ε_t?

• A)an irrational wave of optimism among investors
• B)a decrease in government spending
• C)an aggressive increase in oil prices by a cartel
• D)an increase in the central bank's inflation target

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Definitions:

Monthly Mortgage Payment

The amount paid by a borrower to a lender each month, which includes principal and interest on a mortgage loan.

Borrowed

Borrowed refers to funds or items taken on loan from another party, which are expected to be returned or paid back under agreed-upon conditions.

Amortized

The process of spreading out a loan or debt into a series of fixed payments over time, gradually reducing the balance.

Mortgage Payment

Regular payments made towards a mortgage loan, typically including both interest and principal.