Which of the Following Shifts the Aggregate Demand Curve Rightward

question 404

Multiple Choice

Which of the following shifts the aggregate demand curve rightward?

• A) an increase in tax rates
• B) an increase in government expenditure
• C) an increase in the exchange rate
• D) an increase in imports

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Definitions:

Current Ratio

A measure of a company’s capability to settle short-term debts using its current assets.

Acid-Test Ratio

A stringent indicator of a company's short-term liquidity, calculated by dividing liquid assets by current liabilities, excluding inventory from assets.

Financial Stability

The condition of having strong financial health, characterized by a solid balance sheet, manageable debt, and the capability to meet short and long-term obligations.

Operating Efficiency

A measure of how well a company utilizes its resources to generate profit without unnecessary waste.