Which of the Following Changes Shifts the AD Curve Down

question 54

Multiple Choice

Which of the following changes shifts the AD curve down and to the left?

• A)A decline in the nominal money supply
• B)A decrease in income taxes
• C)A decrease in the risk on nonmonetary assets
• D)An increase in the future marginal productivity of capital

Understand the principles of the business judgment rule and its protections for corporate managers.

Identify the legal and ethical responsibilities of corporate managers and directors, including duties of loyalty and care.

Comprehend the legality and implications of insider trading, including the role of tipper and tippee.

Distinguish between shareholders, stakeholders, and officers within a corporation and their respective roles and rights.

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Definitions:

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, becomes due and is to be paid.

Price Sensitive

Pertaining to stocks or securities that are highly responsive to changes or news in the market, affecting their price movements.

Zero-Coupon Bond

A debt security that does not pay interest (coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.

Yield to Maturity

The total return anticipated on a bond if the bond is held until it matures, reflecting interest payments and price changes.