In the Aggregate Demand and Aggregate Supply Model, When Does

question 245

Multiple Choice

In the aggregate demand and aggregate supply model, when does the aggregate quantity of goods demanded decrease?

• A) when real wealth increases
• B) when the interest rate falls
• C) when the dollar depreciates
• D) when stock prices fall

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Definitions:

Common Stock

Shares representing ownership in a company, giving holders voting rights and a share in the company's profits through dividends.

Retained Earnings

Profits that a company has kept or retained rather than paid out as dividends to shareholders.

Dividends

Payments made by a corporation to its shareholder members, typically from profits earned.

Revenues

The total amount of money received by the company for goods sold or services provided during a certain period.