A Negative Demand Shock Causes a ________ the IS Curve

question 57

Multiple Choice

A negative demand shock causes a ________ the IS curve and a ________ the aggregate demand curve.

• A) movement up along; shift to the left of
• B) shift to the right of; movement up along
• C) movement down along; movement down along
• D) shift to the left of; shift to the left of

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Definitions:

Annual Pay

The total monetary compensation an employee receives from their employer in a one-year period, including all forms of salary, bonuses, and other financial benefits.

Asset Portfolios

Collections of various types of investments held by individuals or institutions to diversify risk and achieve financial goals.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, expressed in years.

Adjustable-Rate Mortgages

A type of mortgage in which the interest rate applied to the outstanding balance varies throughout the life of the loan.