Which One of the Following Factors Will Most Likely Cause

question 31

Multiple Choice

Which one of the following factors will most likely cause an increase in aggregate demand?

• A) An increase in net exports.
• B) An increase in the real interest rate.
• C) A decrease in net exports due to falling incomes abroad.
• D) A technological development that decreases the cost of producing computer chips.

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Definitions:

Replacement Warranty

A guarantee provided to a purchaser of a product that a defective item will be replaced within a specified period of time.

Unfunded Pension Liability

A pension obligation for which sufficient assets have not been set aside, representing a potential future liability for the employer.

Current Liability

A company's debts or obligations that are due to be paid within one year or within the normal operating cycle.

Pension Expense

The cost recognized by a company for the benefits provided to employees in retirement pension plans.