Which of the Following Would Result from an Increase in Planned

question 7

Multiple Choice

Which of the following would result from an increase in planned investment?  

• A) an outward shift in the aggregate demand curve 
• B) an inward shift in the aggregate demand curve 
• C) an outward shift in the aggregate supply curve 
• D) an inward shift in the aggregate supply curve

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Definitions:

Effective Interest Rate

The actual return on an investment, considering the compounding of interest.

Compounding

The process of generating earnings on an asset's reinvested earnings, leading to exponential growth over time.

Present Value

The modern-day valuation of upcoming money amounts or cash flow sequences, adjusted according to a given rate of return.

Bank Account

A financial account maintained by a bank for a customer, allowing the customer to deposit and withdraw money and possibly earn interest.