Which of the Following Will Not Cause an Increase in Aggregate

question 56

Multiple Choice

Which of the following will not cause an increase in aggregate output (Y) in the long run?

• A)an increase in N
• B)an increase in K
• C)an increase in technology
• D)a reduction in the saving rate
• E) none of the above

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Definitions:

Market Interest Rate

The prevailing rate of interest being offered on deposits and loans in the market, influencing how much borrowers pay and lenders earn.

Yield to Maturity

Yield to Maturity (YTM) is the total return anticipated on a bond if the bond is held until the date it matures, accounting for interest payments and principal recovery.

Par Value

The face value of a bond or stock as stated by the issuing company, not necessarily its market value.

Annual Coupon

The annual interest payment made to bondholders, typically fixed and expressed as a percentage of the bond's face value.