Which of the Following Increases Aggregate Demand and Shifts the AD

question 306

Multiple Choice

Which of the following increases aggregate demand and shifts the AD curve rightward?

• A) a fall in the price level
• B) an increase in the quantity of money and a resulting fall in the interest rate
• C) predictions of a recession that lead to expectations of lower future income
• D) an increase in the exchange rate that makes imports less expensive

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Definitions:

Poison Pill

A defensive strategy used by companies to deter hostile takeovers by making the company less attractive to the potential acquirer.

Takeover Bid

An offer made by an individual, group, or company to purchase a significant portion or all of the target company's shares in order to gain control of the target company.

Hostile Takeover

An acquisition attempt by a company or individual that is opposed by the target company's management and board of directors.

Flip-Over Provision

A defensive mechanism in a company's charter intended to deter hostile takeovers by allowing shareholders to purchase additional shares at a discount in the event of a takeover.