What Effect Would an Increase in Consumption,combined with an Increase

question 87

Multiple Choice

What effect would an increase in consumption,combined with an increase in exports,have on aggregate demand (AD) ?

• A)AD could either increase or decrease, depending on which change was of a greater magnitude.
• B)AD would decrease.
• C)AD would increase.
• D)AD would stay the same.

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Definitions:

Interest Receivable

An asset account on the balance sheet representing interest income that has been earned but not yet collected in cash.

Strategic Goals

Long-term, broadly defined targets an organization sets to achieve its vision and mission.

Available-for-Sale Securities

Debt or equity securities not classified as held-to-maturity or trading securities, recorded at fair value.

Interest Receivable

A term in accounting referring to interest revenue that is accumulated but has not yet been paid in cash.