Which of the Following Increases Aggregate Demand and Shifts the AD

question 306

Multiple Choice

Which of the following increases aggregate demand and shifts the AD curve rightward?

• A) a fall in the price level
• B) an increase in the quantity of money and a resulting fall in the interest rate
• C) predictions of a recession that lead to expectations of lower future income
• D) an increase in the exchange rate that makes imports less expensive

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Definitions:

Monthly Target Profit

The specific amount of profit a company aims to achieve within a month.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, influenced by the proportion of fixed costs in total costs.

Net Operating Income

Income produced by a firm's regular activities, not including taxes and interest.

Sales Increase

The rise in the quantity or volume of products sold or revenue generated over a specific period.