A Decrease in Investment Leads to ________ in Aggregate Demand

question 74

Multiple Choice

A decrease in investment leads to ________ in aggregate demand and ________ in real GDP.

• A)an increase;an increase
• B)an increase;a decrease
• C)a decrease;an increase
• D)a decrease;a decrease
• E)no change;a decrease

Determine the impact of intra-company sales on the overall profitability of the company.

Assess the financial benefits of internal transfers for both the selling and buying divisions.

Identify variables that influence transfer pricing decisions, such as variable costs, idle capacity, and external supply costs.

Evaluate the impact of reduced shipping and selling costs on transfer pricing.

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Definitions:

Guaranteed

A promise or assurance, typically in writing, that certain conditions will be fulfilled or a particular product will meet a specified level of quality.

Express Warranty

A clearly stated promise or guarantee about the quality or durability of a product, usually offered at the point of sale.

Enforceable

Capable of being imposed or carried out by law.

Warranties of Assignability

Guarantees that rights or interests can be transferred from one party to another in a contract or agreement.