All of the Following Shift the Aggregate Demand Curve to the Right

question 65

Multiple Choice

All of the following shift the aggregate demand curve to the right EXCEPT

• A) an increase in taxes.
• B) an increase in expected future profit.
• C) an expansion of the global economy.
• D) an increase in government expenditure.
• E) an increase in foreign income.

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Definitions:

Required Return

The minimum return an investor expects to achieve when investing in a particular asset, taking into account its risk level.

Share Price

The current price at which a share of a company is bought or sold on the stock market.

Free Cash Flow (FCF)

The money a business produces once it has subtracted the funds used to sustain its operations and keep up its capital assets.

Weighted Average Cost of Capital (WACC)

The rate that a company is expected to pay on average to all its security holders to finance its assets, a measure of the cost of capital.