The AD Curve Shifts to the Right If _____ Decrease(s)

question 39

Multiple Choice

The AD curve shifts to the right if _____ decrease(s) .

• A) consumption
• B) money supply
• C) taxes
• D) all of the above

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Definitions:

Pre-Tax Cost

The expense or cost associated with an activity or asset before the application of taxes, often used in financial analysis.

Required Return

The minimum expected return investors demand for investing in a security or project.

Unlevered Return

A return on investment that doesn't account for debt, measuring the performance of an investment as if no borrowing took place.

Cost of Equity

The return a firm theoretically pays to its equity investors to compensate them for the risk they undertake by investing in the company.