Suppose Investment Is NOT Sensitive to Changes in the Interest

question 75

Multiple Choice

Suppose investment is NOT sensitive to changes in the interest rate.How will changes in the money supply affect aggregate demand?  

• A) Aggregate demand will increase. 
• B) Aggregate demand will decrease. 
• C) Aggregate demand will remain the same. 
• D) Aggregate demand will become negative.

---

Definitions:

Intervivos Trust

A trust created during the lifetime of the settlor, allowing the settlor to transfer assets before their death for the benefit of designated beneficiaries.

Irrevocable Living Trust

A type of trust where the grantor transfers assets into the trust and relinquishes all rights to revoke or amend the trust, offering benefits for estate planning and asset protection.

Rescind

To revoke, cancel, or annul a contract, agreement, or resolution.

Uniform Simultaneous Death Act

A legal guideline used to determine inheritance when two or more people die at the same time or under conditions where it's impossible to determine who died first.