An Increase in Net Exports Will Shift the

question 245

Multiple Choice

An increase in net exports will shift the

• A) aggregate expenditures curve upward and the aggregate demand curve rightward.
• B) aggregate expenditures curve upward and the aggregate demand curve leftward.
• C) aggregate expenditures curve downward and the aggregate demand curve rightward.
• D) aggregate expenditures curve downward and the aggregate demand curve leftward.

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Definitions:

Zero-Coupon Bond

A bond that does not pay periodic interest and is sold at a discount from its face value, with the return being the difference between the purchase price and the bond's face value at maturity.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, often indicating the bond's price volatility.

Coupon

The interest rate stated on a bond when issued, which is typically paid at regular intervals until maturity.

Target Date Immunization

A strategy used in fixed-income portfolio management where the portfolio is structured to become immune to interest rate changes as it reaches a specified date.