In Which Case Does the Aggregate Demand Curve Shift Right

question 89

Multiple Choice

In which case does the aggregate demand curve shift right?

• A)the price level rises, making the interest rate drop
• B)the price level falls, making the interest rate drop
• C)the money supply increases, making the interest rate drop
• D)the money supply decreases, making the interest rate drop

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, often impossible to mitigate through diversification alone.

Unsystematic Risk

Unsystematic risk, also known as company-specific risk or idiosyncratic risk, is the type of uncertainty that comes with a company or industry that can be mitigated through diversification.

Weights

In finance, it refers to the proportional factors assigned to different components of a portfolio or capital structure.

Expected Return

The weighted average of all possible returns from an investment, accounting for the probability of each outcome.