A Decrease in the Price of Foreign Oil Will Affect

question 112

Multiple Choice

A decrease in the price of foreign oil will affect the U.S.economy by

• A)increasing aggregate demand.
• B)decreasing aggregate demand.
• C)increasing aggregate supply.
• D)decreasing aggregate supply.

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Definitions:

Rate of Return

The upward or downward movement in the value of an investment over a certain period, measured as a percentage of the cost at the beginning.

Broker Charges

Fees or commissions that a broker charges for executing trades or providing services on behalf of clients.

Nongovernmental Regulator

An organization that has regulatory or oversight powers over certain practices or industries but is not an official governmental agency, such as FINRA.

Stop-buy Orders

An order to purchase a security when its price reaches a specific level, used to limit loss or enter a market as prices rise.