Which of the Following Events Would Most Likely Reduce Aggregate

question 131

Multiple Choice

Which of the following events would most likely reduce aggregate demand?

• A) a reduction in the amount of existing capital stock
• B) a reduction in business and personal tax rates
• C) an increase in expected returns on investment
• D) an increase in real interest rates

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Definitions:

Dissolves

The act of officially ending the existence of an entity such as a corporation, partnership, or marriage.

Taxed

Imposed financial charges by a government on income, goods, or activities for public funding.

Separate Entity

A principle acknowledging that a business has its own legal identity, distinct from its owners or members, allowing it to own property, incur debts, and enter into contracts independently.

UPA

Uniform Partnership Act, a standardized set of laws intended to regulate the operation of partnerships within the United States.