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

Identify the primary components and terminology related to credit transactions.

Understand the perpetual and periodic inventory systems and their implications for financial accounting.

Recognize sales discounts and how they are recorded in accounting transactions.

Understand how the return of merchandise impacts financial records.

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Definitions:

Year-end Adjustment

Adjustments made to financial statements at the close of a fiscal year to account for all financial activities and ensure accuracy in reporting.

Market Value

The current price at which an asset or service can be bought or sold, determined by the supply and demand dynamics in the open market.

Common Stock

Shares of ownership in a corporation that entitle the shareholder to vote on corporate matters and receive dividends, subject to the company's profitability.

Short-term Speculation

The practice of buying and selling assets with the intention of making quick profits from short-term fluctuations in price.