Everything Else Held Constant,if Aggregate Output Is to the ________

question 50

Multiple Choice

Everything else held constant,if aggregate output is to the ________ of the LM curve,then there is an excess ________ of money which will cause the interest rate to fall.

• A)right;supply
• B)right;demand
• C)left;supply
• D)left;demand

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Definitions:

Annually

Referring to events or measurements that occur once every year.

Indexed Bonds

The interest rate of such a bond is based on an inflation index such as the consumer price index (CPI), so the interest paid rises automatically when the inflation rate rises, thus protecting the bondholders against inflation.

United States

A country located in North America with a federal republic government, known for being one of the world's largest economies.

Companies Creditors Arrangements Act

A Canadian federal law providing financially troubled corporations the opportunity to restructure their affairs through a formal plan of arrangement.