An Increase in Aggregate Expenditures Resulting from a Decrease in the Price

question 46

Multiple Choice

An increase in aggregate expenditures resulting from a decrease in the price level is equivalent to a

• A) rightward shift of the aggregate demand curve.
• B) leftward shift of the aggregate demand curve.
• C) movement downward along a fixed aggregate demand curve.
• D) decrease in aggregate supply.

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Definitions:

Stock Prices

Stock prices are the current market price at which shares of a company can be bought or sold. They fluctuate based on demand and supply, company performance, and market conditions.

Dividends

Funds distributed by a company to its shareholders, typically coming from the firm's profits.

Clientele Effect

The theory suggesting that changes in dividend policy can attract or repel specific groups of investors, affecting the stock price.

Dividends

Disbursements issued by a company to its shareholders, representing a share of the earnings distributed to its stock owners.