Which of the Following Decreases Aggregate Demand and Shifts the AD

question 125

Multiple Choice

Which of the following decreases aggregate demand and shifts the AD curve leftward?

• A)A decrease in government expenditures
• B)A decrease in the price of exported goods and services
• C)A decrease in potential GDP
• D)A tax cut
• E)A decrease in price level

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Definitions:

Cashier's Check

A bank-issued check that is drawn from the bank's own funds and signed by a cashier, commonly used for significant transactions requiring guaranteed funds.

Certificate of Deposit

A financial product offered by banks that locks in a sum of money for a fixed period, offering higher interest rates than regular savings accounts.

Maker

The individual or entity that creates or issues a promissory note and is responsible for repaying the debt specified in that note.

Holder in Due Course

A legal term describing a person who has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defenses and claims that could be raised against the original issuer.